Effects on Market Wages, Food Grains Consumption and Agricultural Productivity in India: A Study on MGNREGA Workers

Abstract

This paper examines the Workers’ Level Schedule data from the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA, 2005) evaluation study, India. The data help us draw insights on the efficacy of implementation of the Act in 12 states of India on the basis of responses of rural unskilled workers. The empirical evidence provides in-depth insights on high variations in market and MGNREGA wages, food grains consumption and farm yield among different States even after 15 years of implementation. In addition to various statistical measures, the study also incorporates logistic regression models to investigate the factors affecting an affirmative response of workers when asked about the increment in three indicators in the post-MGNREGA intervention. We conclude unless location-based regional parameters are included in the Act, such a Pan-India policy is impossible to reach the door of rural poor in an extremely heterogeneous country like India.