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Evaluating the Efficiency in MGNREGA During COVID-19 Pandemic: An Interstate Analysis Using Data Envelopment Analysis

Author

Listed:
  • Khursheed Hussain Dar

    (Central University of Kashmir)

  • Shahid Hamid Raina

    (Vellore Institute of Technology)

  • Masroor Ahmad

    (Central University of Kashmir)

Abstract

The current paper focusses on evaluating the inter-state efficiency in implementation of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) during the COVID-19 pandemic, using data envelopment analysis. This research focussed on two objectives: (1) to analyse the technical efficiency in MGNREGA across Indian states. and (2) to identify the reference states and targets for the inefficient states for improving their efficiency. Since MGNREGA focusses on employment generation and asset creation, efficiency is estimated across these two dimensions. The results showed that there are inefficiencies in implementing MGNREGA across major and minor states of India. The mean technical efficiency across major states was 0.76 and 0.58 for asset creation and employment generation, respectively. The mean technical efficiency across minor states was 0.83 and 0.54 for asset creation and employment generation, respectively. The inefficiencies are more in terms of employment generation compared to asset creation. The states need to put in extra efforts to improve the efficiency in implementing the MGNREGA scheme.

Suggested Citation

  • Khursheed Hussain Dar & Shahid Hamid Raina & Masroor Ahmad, 2024. "Evaluating the Efficiency in MGNREGA During COVID-19 Pandemic: An Interstate Analysis Using Data Envelopment Analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(1), pages 157-175, March.
    • Handle: RePEc:spr:ijlaec:v:67:y:2024:i:1:d:10.1007_s41027-024-00485-6
    DOI: 10.1007/s41027-024-00485-6
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    More about this item

    Keywords

    MGNREGA; Employment; Asset creation; India; Efficiency;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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