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Impact of Shocks on Labour and Schooling Outcomes and the Role of Public Work Programmes in Rural India

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  • Joseph Boniface Ajefu
  • Olukorede Abiona

Abstract

The effectiveness of the National Rural Employment Guarantee Scheme (NREGS) on rural labour market dynamics in India has been widely debated in the literature. However, the impact of the NREGS on non-agricultural labour market and children schooling outcomes in reference to exogenous rainfall shock is unclear from the existing literature. This paper exploits the Indian National Sample Survey and rainfall measures from the precipitation archive of the University of Delaware to investigate the role of the NREGS in the labour market and schooling outcomes of children during shocks. Using a difference-in-differences methodology, we focus on disaggregated shock specification and find a shock-cushioning pattern for the NREGS during negative shocks. However, there is an excess demand for labour during positive shock periods resulting from exposure to the NREGS. The implication is that the excess informal labour market opportunity translates to a reduction in school engagement for children. These findings summarily distinguish the role of the NREGS during positive and negative shocks respectively.

Suggested Citation

  • Joseph Boniface Ajefu & Olukorede Abiona, 2019. "Impact of Shocks on Labour and Schooling Outcomes and the Role of Public Work Programmes in Rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 55(6), pages 1140-1157, June.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:6:p:1140-1157
    DOI: 10.1080/00220388.2018.1464146
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    Cited by:

    1. Yannick Markhof & Isabela Franciscon & Nicolò Bird & Pedro Arruda, 2021. "Social assistance programmes in South Asia: an evaluation of socio-economic impacts," Research Report 62, International Policy Centre for Inclusive Growth.
    2. Jules Gazeaud & Victor Stephane, 2023. "Productive Workfare? Evidence from Ethiopia's Productive Safety Net Program," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 265-290, January.
    3. Feeny, Simon & Mishra, Ankita & Trinh, Trong-Anh & Ye, Longfeng & Zhu, Anna, 2021. "Early-Life exposure to rainfall shocks and gender gaps in employment: Findings from Vietnam," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 533-554.
    4. Taraz, Vis, 2023. "Public works programmes and agricultural risk: Evidence from India," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(02), January.
    5. Efobi Uchenna, 2019. "Cross-Border Trade and Infrastructure: A Gender Analysis of Welfare Outcomes in Nigeria," SAGE Open, , vol. 9(2), pages 21582440198, April.

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