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Heterogeneous welfare impacts of National Rural Employment Guarantee Scheme: Evidence from Andhra Pradesh, India

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  • Deininger, Klaus
  • Liu, Yanyan

Abstract

We use a three-round, 4013-household panel from Andhra Pradesh, together with administrative data and village and population census data, to explore the welfare effects of India’s National Rural Employment Guarantee Scheme (NREGS) on direct beneficiaries. NREGS participants in districts that had been exposed to the program for one year only significantly increased protein and energy intake while in districts with two-year exposure, participants were able to accumulate more nonfinancial assets. The benefits are most pronounced for scheduled casts/scheduled tribes and for the poor, in particular female headed households and households with disabilities. We also find that increased income from casual labor is the primary channel through which the effects are realized. We find no evidence that NREGS participation has resulted in higher private investment in land improvement.

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  • Deininger, Klaus & Liu, Yanyan, 2019. "Heterogeneous welfare impacts of National Rural Employment Guarantee Scheme: Evidence from Andhra Pradesh, India," World Development, Elsevier, vol. 117(C), pages 98-111.
    • Handle: RePEc:eee:wdevel:v:117:y:2019:i:c:p:98-111
    DOI: 10.1016/j.worlddev.2018.12.014
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    More about this item

    Keywords

    India; Employment guarantee; NREGS; Caste; Public works;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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