Is Workfare Cost-effective against Poverty in a Poor Labor-Surplus Economy?

B-Tier
Journal: World Bank Economic Review
Year: 2016
Volume: 30
Issue: 3
Pages: 413-445

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Workfare has often seemed an attractive option for making self-targeted transfers to poor people. But is this incentive argument strong enough in practice to prefer unproductive workfare to even untargeted cash transfers? A nonparametric survey-based method is used to assess the cost-effectiveness of a large workfare scheme in a poor state of India with high unemployment. Forgone earnings are evident but fall short of market wages. For the same budget, unproductive workfare has less impact on poverty than either a basic-income scheme or transfers tied to the government's assignment of ration cards. The productivity of workfare is thus crucial to its justification as an antipoverty policy.

Technical Details

RePEc Handle
repec:oup:wbecrv:v:30:y:2016:i:3:p:413-445.
Journal Field
Development
Author Count
3
Added to Database
2026-01-29