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Linkage between Microfinance participation and securing Employment through MGNREGP


  • Kundu, AMIT


In this paper the relationship is assessed between participation in microfinance program under SGSY scheme through forming Self-Help Group and getting employment through Mahatma Gandhi National Rural Employment Guarantee Program (MGNREGP). Using Tobit Model with endogenous covariate method it is established that participation in microfinance program operating through joint liability credit contract help the rural households mainly the women to generate more social capital than the non-participant households which ultimately help them to get more information about different developmental program like MGNREGP initiated by the government. Hence, it came out from our investigation that microfinance participant member households get more number of man-days of employment through MGNREGP than the non-member households. It is also established from our investigation that households with higher average monthly income and less dependency ratio are less prone to demand job under MGNREGP.

Suggested Citation

  • Kundu, AMIT, 2012. "Linkage between Microfinance participation and securing Employment through MGNREGP," MPRA Paper 44284, University Library of Munich, Germany, revised 16 Oct 2012.
  • Handle: RePEc:pra:mprapa:44284

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    References listed on IDEAS

    1. Kundu, AMIT, 2011. "Enhancement of social capital through participation in micro-finance: an empirical investigation," MPRA Paper 39221, University Library of Munich, Germany, revised 05 Jan 2012.
    2. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-591, May.
    3. Amit Kundu, 2011. "Can Microcredit And Job Under Nregs Jointly Bring More Happiness To The Villagers?," The IUP Journal of Governance and Public Policy, IUP Publications, vol. 0(1), pages 7-23, March.
    4. Kundu, Amit, 2010. "Joint versus Individual Liability in Microfinance – A Comparative Impact Evaluation Through Natural Experiment," MPRA Paper 32695, University Library of Munich, Germany, revised 01 Apr 2011.
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    More about this item


    Mahatma Gandhi National Rural Employment Guarantee Program; Microfinance; Self-Help Group; Social Capital;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages


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