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The impact of India's rural employment guarantee on demand for agricultural technology

Anil Bhargava

No 1381, IFPRI discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: This paper investigates whether this increase in the opportunity cost of agricultural labor incentivizes farm owners to adopt labor-saving agricultural technology. Using a regression discontinuity design and new Indian agricultural census data, this paper finds that NREGA causes a shift of roughly 20 percentage points away from labor-intensive technologies toward labor-saving ones, particularly for small farmers and low-powered technologies.

Keywords: technology adoption; labor markets; Poverty; rural areas; subsidies; Agricultural development; welfare; employment; social protection; social safety nets; Mahatma Gandhi National Rural Employment Guarantee (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-dev
Date: 2014
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Related works:
Working Paper: The Impact of India's Rural Employment Guarantee on Demand for Agricultural Technology (2014) Downloads
Working Paper: The Impact of India’s Rural Employment Guarantee on Demand for Agricultural Technology (2013) Downloads
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