Thursday, May 5, 2011

9 May 2011: Workfare in Low Income Countries: An Effective Way to Fight Poverty? The Case of India's NREGS

Shamika Ravi
ISB, Hyderabad and Microfinance Management Institute of the Open Society Institute, Washington

The paper analyses the impact of India's National Rural Employment Guarantee Scheme (NREGS) on rural households. In particular, it looks at the impact of the program on food security, savings and health outcomes using an initial baseline survey data of 1066 households and a subsequent panel data of 320 households from Andhra Pradesh. The panel consists of data from June 2007 to December 2008. The authors have calculated estimates based on propensity score matching, double difference and triple difference estimates to account for non-random attrition. The main results indicate that the NREGS improves food security, increases probability of holding savings and reduces anxiety level among low income households. They have looked at various sub-categories of monthly per capita consumption expenditure, and find that NREGS significantly increases monthly p.c. expenditure on food by 40 percent (Rs. 96.6) and increase p.c. expenditure on non-food consumables by 69 percent (Rs. 16.3). The program improves probability of holding savings by 9 percent and reduces incidence of depression and stress by 8 percent. The impact on food security is stronger for the poorest group.

Date: May 9, 2011
Time: 11:30 A.M.

Conference Hall,
Centre for Policy Research,
Dharma Marg, Chanakyapuri,
New Delhi–110021(INDIA)


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