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Do rural public works influence agricultural wages? The case of the employment guarantee scheme in India

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  • Raghav Gaiha

Abstract

Since growth alone will not make a significant difference to agricultural wages in an oligopsonistic labour market, a case is made out for special employment programmes along the lines of the Employment Guarantee Scheme (EGS) in the Indian state of Maharashtra. The EGS has a substantial effect on agricultural wages—especially long-term. Diminution of income supplementation through this scheme, following a sharp reduction in the share of poor participants, was thus partly offset by higher agricultural wages. To the extent that this income diminution reflected exclusion of the poor from the EGS because of deficiencies in its design and implementation, prompt remedial action would enhance significantly their bargaining power vis-a-vis that of large landholders.

Suggested Citation

  • Raghav Gaiha, 1997. "Do rural public works influence agricultural wages? The case of the employment guarantee scheme in India," Oxford Development Studies, Taylor & Francis Journals, vol. 25(3), pages 301-314.
    • Handle: RePEc:taf:oxdevs:v:25:y:1997:i:3:p:301-314
    DOI: 10.1080/13600819708424137
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    Cited by:

    1. Imai, Katsushi, 2007. "Targeting versus universalism: An evaluation of indirect effects of the Employment Guarantee Scheme in India," Journal of Policy Modeling, Elsevier, vol. 29(1), pages 99-113.
    2. Clément Imbert & John Papp, 2012. "Equilibrium Distributional Impacts of Government. Employment Programs: Evidence from India's Employment Guarantee," PSE Working Papers halshs-00680451, HAL.
    3. Dey, S., 2010. "Evaluating India's national rural employment guarantee scheme," ISS Working Papers - General Series 18703, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    4. Azam, Mehtabul, 2012. "The Impact of Indian Job Guarantee Scheme on Labor Market Outcomes: Evidence from a Natural Experiment," IZA Discussion Papers 6548, Institute of Labor Economics (IZA).
    5. Erlend Berg & Sambit Bhattacharyya & D Rajasekhar & R Manjula, 2014. "Can Public Employment Schemes Increase Equilibrium Wages? Evidence from a Natural Experiment in India," The Centre for Market and Public Organisation 14/317, The Centre for Market and Public Organisation, University of Bristol, UK.
    6. Berg, Erlend & Bhattacharyya, Sambit & Rajasekhar, D. & Manjula, R., 2018. "Can public works increase equilibrium wages? Evidence from India’s National Rural Employment Guarantee," World Development, Elsevier, vol. 103(C), pages 239-254.
    7. repec:bri:cmpowp:13/317 is not listed on IDEAS
    8. A. Udayaadithya & Anjula Gurtoo, 2013. "Governing the local networks in Indian agrarian societies—an MAS perspective," Computational and Mathematical Organization Theory, Springer, vol. 19(2), pages 204-231, June.
    9. Raghav Gaiha, 2004. "Is There a Case for the Employment Guarantee Scheme in India? Some Recent Evidence," ASARC Working Papers 2004-09, The Australian National University, Australia South Asia Research Centre.

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