Determinants of NREGS participation and perceived livelihood benefits: a comparative analysis of two backward districts of West Bengal in India

Abstract

The national rural employment guarantee scheme (NREGS) was launched in 2006, in coherence with the pursuit of the objective of removing poverty and unemployment. The paper attempts to analyse the determinants of household's participation in NREGS and perceived livelihood benefits from this program. However household's decision for participation in NREGS jobs is influenced by various socio-economic factors. In this context a logit regression model has been used to analyse the determinants of household's participation in NREGS program. A simultaneous equation model has been used to show the endogenous relationship between employment days per household and perceived livelihood benefits from NREGS. Empirical analysis reveals that factors like income from other sources, amount of land holding, level of education and amount of livestock have significant inverse association with the likelihood of household's participation. It is also observed from the study that, although income earned from the NREGS is able to meet some sort of food expenses of rural people, it has neither served to meet their educational expenses in an adequate manner nor helped generate assets to a substantial extent.