Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee
American Economic Journal: Applied Economics
vol. 7,
no. 2, April 2015
(pp. 233-63)
Abstract
We estimate the effect of a large rural workfare program in India on private employment and wages by comparing trends in districts that received the program earlier relative to those that received it later. Our results suggest that public sector hiring crowded out private sector work and increased private sector wages. We compute the implied welfare gains of the program by consumption quintile. Our calculations show that the welfare gains to the poor from the equilibrium increase in private sector wages are large in absolute terms and large relative to the gains received solely by program participants. (JEL I38, J31, J45, J68, O15)Citation
Imbert, Clément, and John Papp. 2015. "Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee." American Economic Journal: Applied Economics, 7 (2): 233-63. DOI: 10.1257/app.20130401Additional Materials
JEL Classification
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
- J31 Wage Level and Structure; Wage Differentials
- J45 Public Sector Labor Markets
- J68 Mobility, Unemployment, and Vacancies: Public Policy
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
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