Evaluating Workfare When the Work Is Unpleasant : Evidence for India’s National Rural Employment Guarantee Scheme

Prevailing practices in evaluating workfare programs have ignored the disutility of the type of work done, with theoretically ambiguous implications for the impacts on poverty. In the case of India's National Rural Employment Guarantee Scheme,...

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Main Authors: Lagrange, Arthur Alik, Ravallion, Martin
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2012/11/16981158/evaluating-workfare-work-unpleasant-evidence-indias-national-rural-employment-guarantee-scheme
http://hdl.handle.net/10986/12113
id okr-10986-12113
recordtype oai_dc
spelling okr-10986-121132021-04-23T14:02:59Z Evaluating Workfare When the Work Is Unpleasant : Evidence for India’s National Rural Employment Guarantee Scheme Lagrange, Arthur Alik Ravallion, Martin ADULT MALE ANTI-POVERTY ANTI-POVERTY PROGRAM BASE YEAR CHANGES IN POVERTY CONSUMPTION EXPENDITURE DAILY WAGE DECOMPOSABLE POVERTY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY EMPLOYMENT GUARANTEE EMPLOYMENT GUARANTEE SCHEME FAMINE FARM PRODUCTIVITY FARMER FUNCTIONAL FORMS GINI COEFFICIENT GROSS WAGES HIGH WAGE HIGHER INEQUALITY HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD CONSUMPTION PER CAPITA HOUSEHOLD SIZE HOUSEHOLD SURVEYS IMPACT ON POVERTY INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME GAINS INEQUALITY INEQUALITY MEASURES INVOLUNTARY UNEMPLOYMENT JOBS LABOR MARKETS LABOR SUPPLY LABOUR LORENZ CURVE MANUAL LABOR MEASUREMENT OF POVERTY MINIMUM WAGE POOR POOR COUNTRIES POOR PEOPLE POORER PEOPLE POVERTY GAP POVERTY IMPACT POVERTY LINE POVERTY LINES POVERTY MEASURES POVERTY PROGRAMS POVERTY RATE PRIVATE MARKET PRIVATE SECTOR PSE PUBLIC SPENDING PUBLIC WORKS REAL WAGE REGULAR JOB RIGHT TO WORK RURAL RURAL AREAS RURAL EMPLOYMENT RURAL HOUSEHOLDS RURAL LABOR RURAL LABOR MARKET RURAL POOR RURAL POVERTY RURAL PUBLIC SELF-EMPLOYMENT SOCIAL PROGRAMS SQUARED POVERTY GAP INDEX SUPPLIERS TARGETING TOTAL WAGES TRANSFER BENEFITS UNEMPLOYMENT WAGE INCREASE WAGE RATE WAGES WEALTH WELFARE INDICATOR WELFARE MEASURE WORKERS WORKING DAYS Prevailing practices in evaluating workfare programs have ignored the disutility of the type of work done, with theoretically ambiguous implications for the impacts on poverty. In the case of India's National Rural Employment Guarantee Scheme, past assessments have relied solely on household consumption per person as the measure of economic welfare. The paper generalizes this measure to allow for the disutility of casual manual work. The new measure is calibrated to the distribution of the preference parameters implied by maximization of an idiosyncratic welfare function assuming that there is no rationing of the available work. The adjustment implies a substantially more "poor-poor" incidence of participation in the scheme than suggested by past methods. However, the overall impacts on poverty are lower, although still positive. The main conclusions are robust to a wide range of alternative parameter values and to allowing for involuntary unemployment using a sample of (self-declared) un-rationed workers. 2013-01-04T21:55:10Z 2013-01-04T21:55:10Z 2012-11 http://documents.worldbank.org/curated/en/2012/11/16981158/evaluating-workfare-work-unpleasant-evidence-indias-national-rural-employment-guarantee-scheme http://hdl.handle.net/10986/12113 English en_US Policy Research Working Paper; No. 6272 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ADULT MALE
ANTI-POVERTY
ANTI-POVERTY PROGRAM
BASE YEAR
CHANGES IN POVERTY
CONSUMPTION EXPENDITURE
DAILY WAGE
DECOMPOSABLE POVERTY
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
EMPLOYMENT GUARANTEE
EMPLOYMENT GUARANTEE SCHEME
FAMINE
FARM PRODUCTIVITY
FARMER
FUNCTIONAL FORMS
GINI COEFFICIENT
GROSS WAGES
HIGH WAGE
HIGHER INEQUALITY
HOUSEHOLD CHARACTERISTICS
HOUSEHOLD CONSUMPTION
HOUSEHOLD CONSUMPTION PER CAPITA
HOUSEHOLD SIZE
HOUSEHOLD SURVEYS
IMPACT ON POVERTY
INCIDENCE OF POVERTY
INCOME
INCOME DISTRIBUTION
INCOME GAINS
INEQUALITY
INEQUALITY MEASURES
INVOLUNTARY UNEMPLOYMENT
JOBS
LABOR MARKETS
LABOR SUPPLY
LABOUR
LORENZ CURVE
MANUAL LABOR
MEASUREMENT OF POVERTY
MINIMUM WAGE
POOR
POOR COUNTRIES
POOR PEOPLE
POORER PEOPLE
POVERTY GAP
POVERTY IMPACT
POVERTY LINE
POVERTY LINES
POVERTY MEASURES
POVERTY PROGRAMS
POVERTY RATE
PRIVATE MARKET
PRIVATE SECTOR
PSE
PUBLIC SPENDING
PUBLIC WORKS
REAL WAGE
REGULAR JOB
RIGHT TO WORK
RURAL
RURAL AREAS
RURAL EMPLOYMENT
RURAL HOUSEHOLDS
RURAL LABOR
RURAL LABOR MARKET
RURAL POOR
RURAL POVERTY
RURAL PUBLIC
SELF-EMPLOYMENT
SOCIAL PROGRAMS
SQUARED POVERTY GAP INDEX
SUPPLIERS
TARGETING
TOTAL WAGES
TRANSFER BENEFITS
UNEMPLOYMENT
WAGE INCREASE
WAGE RATE
WAGES
WEALTH
WELFARE INDICATOR
WELFARE MEASURE
WORKERS
WORKING DAYS
spellingShingle ADULT MALE
ANTI-POVERTY
ANTI-POVERTY PROGRAM
BASE YEAR
CHANGES IN POVERTY
CONSUMPTION EXPENDITURE
DAILY WAGE
DECOMPOSABLE POVERTY
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
EMPLOYMENT GUARANTEE
EMPLOYMENT GUARANTEE SCHEME
FAMINE
FARM PRODUCTIVITY
FARMER
FUNCTIONAL FORMS
GINI COEFFICIENT
GROSS WAGES
HIGH WAGE
HIGHER INEQUALITY
HOUSEHOLD CHARACTERISTICS
HOUSEHOLD CONSUMPTION
HOUSEHOLD CONSUMPTION PER CAPITA
HOUSEHOLD SIZE
HOUSEHOLD SURVEYS
IMPACT ON POVERTY
INCIDENCE OF POVERTY
INCOME
INCOME DISTRIBUTION
INCOME GAINS
INEQUALITY
INEQUALITY MEASURES
INVOLUNTARY UNEMPLOYMENT
JOBS
LABOR MARKETS
LABOR SUPPLY
LABOUR
LORENZ CURVE
MANUAL LABOR
MEASUREMENT OF POVERTY
MINIMUM WAGE
POOR
POOR COUNTRIES
POOR PEOPLE
POORER PEOPLE
POVERTY GAP
POVERTY IMPACT
POVERTY LINE
POVERTY LINES
POVERTY MEASURES
POVERTY PROGRAMS
POVERTY RATE
PRIVATE MARKET
PRIVATE SECTOR
PSE
PUBLIC SPENDING
PUBLIC WORKS
REAL WAGE
REGULAR JOB
RIGHT TO WORK
RURAL
RURAL AREAS
RURAL EMPLOYMENT
RURAL HOUSEHOLDS
RURAL LABOR
RURAL LABOR MARKET
RURAL POOR
RURAL POVERTY
RURAL PUBLIC
SELF-EMPLOYMENT
SOCIAL PROGRAMS
SQUARED POVERTY GAP INDEX
SUPPLIERS
TARGETING
TOTAL WAGES
TRANSFER BENEFITS
UNEMPLOYMENT
WAGE INCREASE
WAGE RATE
WAGES
WEALTH
WELFARE INDICATOR
WELFARE MEASURE
WORKERS
WORKING DAYS
Lagrange, Arthur Alik
Ravallion, Martin
Evaluating Workfare When the Work Is Unpleasant : Evidence for India’s National Rural Employment Guarantee Scheme
geographic_facet South Asia
India
relation Policy Research Working Paper; No. 6272
description Prevailing practices in evaluating workfare programs have ignored the disutility of the type of work done, with theoretically ambiguous implications for the impacts on poverty. In the case of India's National Rural Employment Guarantee Scheme, past assessments have relied solely on household consumption per person as the measure of economic welfare. The paper generalizes this measure to allow for the disutility of casual manual work. The new measure is calibrated to the distribution of the preference parameters implied by maximization of an idiosyncratic welfare function assuming that there is no rationing of the available work. The adjustment implies a substantially more "poor-poor" incidence of participation in the scheme than suggested by past methods. However, the overall impacts on poverty are lower, although still positive. The main conclusions are robust to a wide range of alternative parameter values and to allowing for involuntary unemployment using a sample of (self-declared) un-rationed workers.
format Publications & Research :: Policy Research Working Paper
author Lagrange, Arthur Alik
Ravallion, Martin
author_facet Lagrange, Arthur Alik
Ravallion, Martin
author_sort Lagrange, Arthur Alik
title Evaluating Workfare When the Work Is Unpleasant : Evidence for India’s National Rural Employment Guarantee Scheme
title_short Evaluating Workfare When the Work Is Unpleasant : Evidence for India’s National Rural Employment Guarantee Scheme
title_full Evaluating Workfare When the Work Is Unpleasant : Evidence for India’s National Rural Employment Guarantee Scheme
title_fullStr Evaluating Workfare When the Work Is Unpleasant : Evidence for India’s National Rural Employment Guarantee Scheme
title_full_unstemmed Evaluating Workfare When the Work Is Unpleasant : Evidence for India’s National Rural Employment Guarantee Scheme
title_sort evaluating workfare when the work is unpleasant : evidence for india’s national rural employment guarantee scheme
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2012/11/16981158/evaluating-workfare-work-unpleasant-evidence-indias-national-rural-employment-guarantee-scheme
http://hdl.handle.net/10986/12113
_version_ 1764419042087534592