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Understanding the effects of the world’s largest workfare program

Klaus Deininger's picture

As the world’s largest workfare program, India’s Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGS) has attracted much atten­tion. Yet its impacts on agriculture have been relatively neglected. A re­cent paper by Deininger, Nagarajan, and Singh addresses this gap by fo­cusing on the program’s effects on ag­ricultural productivity as well as labor market outcomes.

The program offers unskilled em­ployment, for up to 100 days a year per household, in projects to provide local productivity-enhancing infrastructure. Wages are set by statute, at rates that are equal for men and women and, it is hoped, not attractive enough to pre­vent effective self-targeting.