Employment Guarantee Programme Research Articles

Welfare Implications of India's Employment Guarantee Programme with a Wage Payment Delay

We examine the efficacy of a popular anti-poverty programme, namely the National Rural Employment Guarantee Act (NREGA) of the Government of India. We argue that a chronic friction of wage payment delay in this flagship programme could adversely affect the welfare of the poor through two channels. First, it causes deferred consumption. Second, it turns labour into a credit good which makes an indebted household work harder to clear off his existing debt. The loss of welfare persists even when the worker has an outside employment option. If a programme of financial inclusion increases the indebtedness of the poor, a wage payment delay in the NREGA programme could escalate this welfare loss although the official indicator of success (i.e., participation) may not reveal this friction.

Does Political Activism and Affiliation Affect Allocation of Benefits in the Rural Employment Guarantee Program: Evidence from West Bengal, India

Summary The paper investigates prevalence of political clientelism in allocation of benefits under the rural employment guarantee program, currently implemented in India. Using survey data collected from some villages of West Bengal, it is found that households, which are politically active and supporters of the local ruling political party, are more likely to receive the benefits in terms of participation, number of days of work and earnings from the program. Qualitative evidence corroborates the findings. The study shows predominance of political favoritism under the program and lays emphasis on reducing rationing and enhancing awareness of the entitlements to curb this practice.

Impact of Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP) on the Rural Poor-A Simple Theoretical Discourse

The basic objective of the Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP) is to provide safety net for the rural poor and to stabilize agricultural production through creating productive assets via employing labourers. Two important linked aspects are worth noting in respect of implementation of the programme. Implementation of MGNREGP in multiple cropping areas can increase the employment opportunities among the landless agricultural labourers and thus has inevitably raised their bargaining power particularly during the time of second crop i.e. post rainy season cultivation. Besides this, Government of India has persistently been hiking per man-day MGNREGP wage. Both these instances undoubtedly increase the reservation wage in agricultural labour market which in turn may have an adverse effect on the farm income in the multi-cropping areas. In this paper, maximum possible per man-day MGNREGP wage is determined at which the corresponding agricultural wage can help the marginal farmers to sustain their net farm income at least at subsistence level. This paper also establishes the fact that as a result of the hike of MGNREGP wage, sustenance of subsistence net farm income may lead to price hike in agricultural sector. The study also attempts to analyze the results in respect of aggregate net pecuniary benefits of the rural poor in the light of MGNREGP considering different agricultural frameworks.

The Unorganized Workers Social Security Act, 2008 - An Approach to Provide Basic & Contingent Social Security to the Unorganized Workers in India

The Unorganized Workers Social Security Act, 2008 - An Approach to Provide Basic & Contingent Social Security to the Unorganized Workers in India

Expanding Social Protection in Developing Countries: A Gender Perspective

This paper discusses social protection initiatives in the context of developing countries and explores the opportunities they present for promoting a gender-equality agenda and women’s empowerment. The paper begins with a brief introduction on the emergence of social protection (SP) and how it is linked to economic and social policy. Next, it reviews the context, concepts, and definitions relevant to SP policies and identifies gender-specific social and economic risks and corresponding SP instruments, drawing on country-level experiences. The thrust of the paper is to explore how SP instruments can help or hinder the process of altering rigid gendered roles, and offers a critical evaluation of SP interventions from the standpoint of women’s inclusion in economic life. Conditional cash transfers and employment guarantee programs are discussed in detail. An extensive annotated bibliography accompanies this paper as a resource for researchers and practitioners.

Linkage between Microfinance Participation and Securing Employment through MGNREGP

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

Mahatma Gandhi National Rural Employment Guarantee Programme and Dalit Development

Mahatma Gandhi National Rural Employment Guarantee Programme and Dalit Development

Social safety nets and nutrient deprivation: An analysis of the National Rural Employment Guarantee Program and the Public Distribution System in India

Using primary data collected during 2007–08 we examine nutritional status with respect to two macronutrients as well as various micronutrients of rural households in three Indian states: Andhra Pradesh, Maharashtra and Rajasthan and find serious deficiencies in regard to these nutrients in all three states. The impact of two policy interventions (NREG and PDS) on nutrient intake is considered and significant impacts are discovered. The impact effects of a change in these policy measures are also computed. Finally, to assess the impact on undernutrition, both the nutrient-income relation and how the proportions of undernourished vary are considered.

National Rural Employment Guarantee Programme in Andhra Pradesh and Rajasthan: some recent evidence

This paper presents results on the participation of rural workers in the National Rural Employment Guarantee Programme based on a pilot survey of three villages in the Chittoor district, Andhra Pradesh (AP), India. These villages are Kaligiri, Obulayyapale and Reddivaripalle, and they were surveyed in December 2007. In contrast to an earlier study of ours on Rajasthan, Scheduled Castes (SCs) and Scheduled Tribes (STs) participated in higher numbers in AP, but in both states these groups participated for slightly lower spells than the residual group of ‘Others’. We find that AP performed better than Rajasthan in terms of targeting poorer caste and income groups such as SCs, STs and landless households. The number of days worked on average was much higher than suggested by other assessments. Our econometric analysis further reinforces the view that disadvantaged groups are not only more likely to participate but also for longer spells. Thus the performance of the National Rural Employment Guarantee Programme has been far from dismal.

Beggar-Thy-Neighbour Tax Cuts: Mobility after a Local Income and Wealth Tax Reform in Switzerland

The world's biggest Employment Guarantee Programme, India's National Rural Employment Guarantee Scheme (NREGS) has been in operation in rural India since February 2006. In principle, the scheme is a self-targeted programme designed to provide 100 days of employment to rural households and to serve as a safety net. More broadly its aim is to reduce rural poverty through the creation of sustainable rural infrastructure which is expected to foster rural economic growth. This study looks at the performance of the NREGS from three perspectives - it examines the targeting aspect of the programme, the efficiency of the implementing PRI bodies and the impact of the program on various outcomes at household level. The study is based on primary data collected from 500 randomly selected households, 2249 individuals and 70 schemes located in 13 Gram Panchayats in Birbhum District of West Bengal, India. On the basis of this primary data, the study reveals that at least in Birbhum District the programme is far more likely to be accessed by poorer households (defined in terms of land holding, monthly per-capita income and other household related characteristics). At the same time there is a clear and substantial impact of left political inclination in terms of enabling access to a greater number of days of work under the scheme. In terms of the efficiency impact, the analysis reveals a clear violation of the formal clauses and the spirit of the NREG Act and thereby undermining the potential of the programme in terms of providing a safety net. In terms of the impact, the study finds no statistically significant impact on economic outcomes at household level but does find a statistically significant and substantial relation between reduction of stress related to joblessness and access to the NREGS. The estimates suggest that while the NREGS may not be creating any new employment, and may indeed be substituting for existing employment opportunities, the scheme is still considered valuable as it offers better working conditions.

“Capture” of anti-poverty programs: An analysis of the National Rural Employment Guarantee Program in India

Using pooled household level data for the Indian states of Rajasthan and Andhra Pradesh we find that the size of landholdings is a negative predictor of participation in the National Rural Employment Guarantee Program (NREGP). In state level analysis this pattern survives in Rajasthan but reverses in Andhra Pradesh where we notice a positive relationship. This paper examines whether this sign reversal in Andhra Pradesh is indicative of program capture in Andhra Pradesh and better targeting in Rajasthan. We compare land inequality, ratio of NREG and slack season agricultural wage rates, political interference, and geographical remoteness across the two states and conclude that program capture may be an issue in Andhra Pradesh, largely because of these reasons. We also find evidence of complementarity between NREGP and the Public Distribution System (PDS), implying that the real income transfer through food subsidy needs supplementation.

From Unpaid to Paid Care Work: The Macroeconomic Implications of HIV and AIDS on Women's Time-Tax Burdens

This paper considers public employment guarantee programs in the context of South Africa as a means to address the nexus of poverty, unemployment, and unpaid work burdens - all factors exacerbated by HIV/AIDS. It further discusses the need for gender-informed public job creation in areas that mitigate the “time-tax” burdens of women, and examines a South African initiative to address social sector service delivery deficits within the government’s Expanded Public Works Programme. The authors highlight the need for well-designed employment guarantee programs - specifically, programs centered on community and home-based care - as a potential way to help offset the destabilizing effects of HIV/AIDS and endemic poverty. The paper concludes with results from macroeconomic simulations of such a program, using a social accounting matrix framework, and sets out implications for both participants and policymakers.

Employment Guarantee Programs: A Survey of Theories and Policy Experiences

This working paper provides a survey of the theoretical underpinnings for the various employment guarantee schemes, and discusses full employment policy experiences in the United States, Sweden, India, Argentina, and France. The theoretical and policy developments are delineated in a historical context. The paper concludes by identifying some questions that still need to be addressed in the context of the global political economy.

Jawahar Rozgar Yojana, Panchayats, and the Rural Poor in India

Rural public works are a major component of India's poverty alleviation strategy. The Jawahar Rozgar Yojana (JRY), the largest such program, was launched in 1989 following the merger of the National Rural Employment Program (NREP) and Rural Landless Employment Guarantee Program (RLEGP). Between 1992-95, total allocation for the JRY grew 18%, from Rs 11.3 billion to Rs 13.4 billion (at 1980-81 prices-all government expenditure data are deflated at this level). Person-days of employment generated rose from 782 million to 895 million, implying a growth of more than 14%.1 The JRY aims to alleviate poverty through creating supplementary employment opportunities for the rural poor during agricultural slack periods. Other objectives are creating social assets, such as, roads, public forests, school buildings, and so forth, and increasing agricultural wage rates. JRY employment preference is given (though no specific targets are set) to members of Scheduled Castes (SCs) and Scheduled Tribes (STs) and 30% of the employment opportunities are reserved for women. The central government's assistance to India's states and union territories is allocated on the basis of the proportion of rural poor in a state or union territory to the total rural poor in the country. Within a state, district-wise allocations are based on an index of backwardness that weights equally the proportion of rural

Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India

Aggregate estimates of food expenditure are consistent with such a possibility, implying income/expenditure elasticities close to one. However, the high degree of aggregation at which such estimates are made means that the considerable increase in price per nutrient as income increases is ignored, and the nutrient elasticities are therefore overstated. Estimates for a rural south Indian sample indicate that this bias is considerable and that the true nutrient elasticities with respect to income may be close to zero.