Does the employment guarantee scheme stabilize household incomes in rural India?

Pasquale Lucio Scandizzo (), Raghav Gaiha and Katsushi S. Imai ()

Applied Economics Letters, 2009, vol. 16, issue 12, pages 1221-1225

Abstract: Our analysis, based on the ICRISAT panel survey of villages in the semi-arid region of south India, confirms the income stabilizing effect of the Employment Guarantee Scheme in India. Variability of household income is measured by an unconditional variance of residuals of an income equation. A (variant) of Heckman's sample selection model is employed to allow for the endogeneity of EGS participation and to assess its income stabilizing role. The (instrumented) EGS participation reduces the residual variance of household income, implying consequent income stabilization.

Date: 2009

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Working Paper: Does the employment guarantee scheme stabilise household incomes in rural India? (2007)
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