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Influence of NREGS on Agricultural Wage Determination in West Bengal: A Dynamic Panel Approach

Author

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  • Amit Kundu

    (Jadavpur University)

  • Sanjib Talukdar

    (Sree Chaitanya Mahavidyalaya)

Abstract

It is investigated whether the expansion of the National Rural Employment Guarantee Scheme (NREGS) can influence the real agricultural wage in West Bengal. The time period studied is between 2005-06 and 2012-13 where 18 districts of the state are used as a unit. Three types of NREGS work like, (i) provision of irrigation facilities, (ii) micro irrigation work and (iii) rural connectivity are considered separately because these works are undertaken in a majority during this tenure. These works have been measured as the total number of tasks completed in different districts in the different years. They are considered separately because each type of asset creation work could influence agricultural wage but not uniformly. Both the ‘push’ and ‘pull’ factors functioning in the labour market are deemed as being able to impact agricultural wage rates. Agricultural wages of a particular district in a particular period is also very affected by the agricultural wage rates prevalent in the same district in the previous period. The dynamic panel approach used in this paper shows that all three types of NREGS work are responsible for the hike of real agricultural wage rates in West Bengal but the impact has not been very strong. It may then, be concluded that, the expansion of the NREGS has little impact when determining the real agricultural wage rate in West Bengal.

Suggested Citation

  • Amit Kundu & Sanjib Talukdar, 2016. "Influence of NREGS on Agricultural Wage Determination in West Bengal: A Dynamic Panel Approach," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(3), pages 381-396, September.
    • Handle: RePEc:spr:ijlaec:v:59:y:2016:i:3:d:10.1007_s41027-017-0062-7
    DOI: 10.1007/s41027-017-0062-7
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    References listed on IDEAS

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    1. Basu, Arnab K. & Chau, Nancy H. & Kanbur, Ravi, 2009. "A theory of employment guarantees: Contestability, credibility and distributional concerns," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 482-497, April.
    2. Kundu, AMIT & Talukdar, SANJIB, 2014. "Impact of Mahatma Gandhi National Rural Employment Guarantee Program on Rural Poor - A Simple Theoretical Discourse," MPRA Paper 66237, University Library of Munich, Germany, revised 19 Mar 2015.
    3. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    4. Kanika Mahajan, 2015. "Farm wages and public works," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 8(1), pages 19-72, April.
    5. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    Cited by:

    1. Kundu, Amit & Das, Sangita, 2018. "Gender Wage Gap in The Agricultural Labor Market of India: An Empirical Analysis," MPRA Paper 95487, University Library of Munich, Germany, revised 10 Feb 2019.

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