The welfare effects of India’s rural employment guarantee

Stefan Klonner and Christian Oldiges

Journal of Development Economics, 2022, vol. 157, issue C

Abstract: We assess the welfare effects of India’s workfare program NREGA using a novel, almost sharp regression discontinuity design. We find large seasonal consumption increases in states implementing the program intensely, which are a multiple of the direct income gains. We also find increases in adolescents’ schooling. Our results imply substantial beneficial indirect effects of this large welfare program. We conclude that public employment programs hold significant potential for reducing poverty and insuring households against various adverse implications of seasonal income shortfalls — when properly implemented.

Keywords: Public works; Employment program; Social welfare programs; Poverty alleviation; Safety net; Labor markets; Poverty; Schooling; Child labor; India (search for similar items in EconPapers)
JEL-codes: I38 J68 O15 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: The Welfare Effects of India's Rural Employment Guarantee (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:157:y:2022:i:c:s0304387822000256

DOI: 10.1016/j.jdeveco.2022.102848

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