Aggregate Effects from Public Works: Evidence from India

A-Tier
Journal: Review of Economics and Statistics
Year: 2022
Volume: 104
Issue: 4
Pages: 797-806

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

This paper explores the aggregate economic effects from India's National Rural Employment Guarantee Scheme (NREGS), which provides up to 100 days of labor to rural laborers at the mandated minimum wage. We examine the within-district change to nighttime lights, a proxy for economic development, and banking deposits using the staggered program rollout for identification. We find consistent and robust evidence that NREGS increased aggregate economic output by 1% to 2% per capita measured by nighttime lights. This effect, however, is not equal across districts. We observe no positive effect of the program in poorer districts, illuminating an important source of heterogeneity.

Technical Details

RePEc Handle
repec:tpr:restat:v:104:y:2022:i:4:p:797-806
Journal Field
General
Author Count
2
Added to Database
2026-01-25