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Short-Term Effects of India's Employment Guarantee Program on Labor Markets and Agricultural Productivity / Klaus Deininger.
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Deininger, Klaus.
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Agricultural Productivity.
- Economic Theory & Research.
- Gender.
- Labor Markets.
- Labor Policies.
- Macroeconomics and Economic Growth.
- Poverty Reduction.
- Rural Development.
- Rural Poverty Reduction.
- Social Protections and Labor.
- Local Subjects:
- Agricultural Productivity.
- Economic Theory & Research.
- Gender.
- Labor Markets.
- Labor Policies.
- Macroeconomics and Economic Growth.
- Poverty Reduction.
- Rural Development.
- Rural Poverty Reduction.
- Social Protections and Labor.
- Physical Description:
- 1 online resource (27 pages)
- Place of Publication:
- Washington, D.C. : The World Bank, 2016.
- System Details:
- data file
- Summary:
- This paper uses a large national household panel from 1999/2000 and 2007/08 to analyze the short-term effects of India's Mahatma Gandhi National Rural Employment Guarantee Scheme on wages, labor supply, agricultural labor use, and productivity. The scheme prompted a 10-point wage increase and higher labor supply to nonagricultural casual work and agricultural self-employment. Program-induced drops in hired labor demand were more than outweighed by more intensive use of family labor, machinery, fertilizer, and diversification to crops with higher risk-return profiles, especially by small farmers. Although the aggregate productivity effects were modest, total employment generated by the program (but not employment in irrigation-related activities) significantly increased productivity, suggesting alleviation of liquidity constraints and implicit insurance provision rather than quality of works undertaken as a main channel for program-induced productivity effects.
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