Impact of Shocks on Labour and Schooling Outcomes and the Role of Public Work Programmes in Rural India

Joseph Ajefu, Olukorede Abiona*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)
2 Downloads (Pure)

Abstract

The effectiveness of the National Rural Employment Guarantee Scheme (NREGS) on rural labour market dynamics in India has been widely debated in the literature. However, the impact of the NREGS on non-agricultural labour market and children schooling outcomes in reference to exogenous rainfall shock is unclear from the existing literature. This paper exploits the Indian National Sample Survey and rainfall measures from the precipitation archive of the University of Delaware to investigate the role of the NREGS in the labour market and schooling outcomes of children during shocks. Using a difference-in-differences methodology, we focus on disaggregated shock specification and find a shock-cushioning pattern for the NREGS during negative shocks. However, there is an excess demand for labour during positive shock periods resulting from exposure to the NREGS. The implication is that the excess informal labour market opportunity translates to a reduction in school engagement for children. These findings summarily distinguish the role of the NREGS during positive and negative shocks respectively.

Original languageEnglish
Pages (from-to)1140-1157
Number of pages18
JournalJournal of Development Studies
Volume55
Issue number6
Early online date2 May 2018
DOIs
Publication statusPublished - 3 Jun 2019
Externally publishedYes

Fingerprint

Dive into the research topics of 'Impact of Shocks on Labour and Schooling Outcomes and the Role of Public Work Programmes in Rural India'. Together they form a unique fingerprint.

Cite this