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The Impact of MGNREGS on Rural Households: Evidence from a Quasi-experiment

In: Understanding Development

Author

Listed:
  • Amit Kundu

    (Jadavpur University)

  • Sanjib Talukdar

    (Sree Chaitanya Mahavidyalaya)

Abstract

The basic objective of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is to provide safety net for the rural poor and stabilize agricultural production through creating productive assets via employing labourers under this programme. In broader perspective, MGNREGS aims to reduce rural poverty by improving the rural livelihood channels. Having that been said, we here apply a quasi-experimental investigation to get an impression of the impact of the implementation of MGNREGS on an important outcome of interest, viz., average monthly income. The study is based on primary data collected from four gram panchayats of two randomly selected blocks of Birbhum district of West Bengal considering 2012–2013 as the reference period. The study observes that the heterogeneity in seeking employment through MGNREGS is panchayat-specific. As a result, the performance of the implementation of MGNREGS depends both qualitatively and quantitatively to a large extent on the efficacy of the panchayat. However, the result of the analysis shows that getting employment through MGNREGS helps the rural households to improve their livelihood.

Suggested Citation

  • Amit Kundu & Sanjib Talukdar, 2016. "The Impact of MGNREGS on Rural Households: Evidence from a Quasi-experiment," India Studies in Business and Economics, in: Swapnendu Banerjee & Vivekananda Mukherjee & Sushil Kumar Haldar (ed.), Understanding Development, edition 1, chapter 14, pages 207-218, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-2455-6_14
    DOI: 10.1007/978-81-322-2455-6_14
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