Why Guarantee Employment? Evidence from a Large Indian Public-Works Program

B-Tier
Journal: Economic Development & Cultural Change
Year: 2024
Volume: 72
Issue: 4
Pages: 2031 - 2067

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

Most countries implement safety net programs for poor households. A widespread concern is that such programs crowd out private-sector jobs, but they could also affect workers’ job choice. This paper analyzes the first-year employment impacts of the world’s largest public-works program, India’s National Rural Employment Generation Scheme (NREGS), using a novel regression-discontinuity design. It focuses on districts treated in phase 2 of the NREGS rollout, which excludes poorer districts that were already treated. The results show that there is little evidence of a crowding out of private-sector jobs. Instead, male workers move from work for pay to family employment, which is driven by smallholder farmers.

Technical Details

RePEc Handle
repec:ucp:ecdecc:doi:10.1086/726251
Journal Field
Development
Author Count
1
Added to Database
2026-01-29