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Guaranteed Employment in Rural India: Intra-Household Labor and Resource Allocation Consequences

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  • García, Jorge Luis

    (Texas A&M University)

Abstract

I investigate the intra-household labor and resource allocation consequences of an employment guarantee targeting rural households in India. The guarantee insures household earnings, replacing women as added workers and shutting down a motive for saving. Despite sizable program-job take-up, the guarantee decreases participation in other working activities, and, thus, the labor force participation of married women and total time worked by their husbands. The guarantee accounts for up to 30% of a recent countrywide decrease in rural female labor force participation. Though it increases household consumption, the guarantee reduces the command of household earnings by women, and, thereby, their wellbeing.

Suggested Citation

  • García, Jorge Luis, 2025. "Guaranteed Employment in Rural India: Intra-Household Labor and Resource Allocation Consequences," IZA Discussion Papers 17689, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17689
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    More about this item

    Keywords

    added-worker effect; family insurance; female labor force participation; guaranteed employment; intra-household bargaining power; poverty;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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