How dependent are the rural poor on the employment guarantee scheme in India?

Publisher Website
Google Scholar
Abstract
An analysis of the ICRISAT data for two villages in the Indian state of Maharashtra points to mistargeting of the Employment Guarantee Scheme (EGS). There was a marked deterioration in it over the period 1979–89, reflected in not just a larger concentration of the more affluent among the EGS participants but also their much larger gains from participating in this scheme. Nevertheless, a large subset of the chronically poor depended heavily on EGS as an additional source of income, with significant welfare gains, during 1979–84. But a large subset — especially of relatively low income participants ‐ also withdrew from EGS when overall economic conditions improved. Besides, EGS earnings varied consistently with economic conditions. Although the present analysis raises some concerns about the mistargeting of EGS and, in this context, about the design and implementation of this scheme, the presumption that such public support makes the poor perpetually dependent on it seems somewhat exaggerated, if not mistaken.