Spillover Impacts on Education from Employment Guarantees

54 Pages Posted: 15 May 2018 Last revised: 25 Jun 2021

Date Written: February 1, 2020

Abstract

Programs that provide lower-skill employment are a popular anti-poverty strategy in developing countries, with India's employment-guarantee program (MGNREGA) employing adults in 23% of Indian households. MGNREGA has reduced rural poverty, but some have raised concerns that guaranteeing lower-skill employment opportunities may discourage investment in human capital and long-run income growth. Using large-scale administrative data and household survey data, I estimate precise spillover impacts on education that reject substantive declines in children's education from the government's rollout of MGNREGA. Further, I estimate that these small negative impacts are in- expensive to counteract, particularly compared to MGNREGA expenditures on rural employment and poverty alleviation.

Keywords: Education, human capital, India

Suggested Citation

Adukia, Anjali, Spillover Impacts on Education from Employment Guarantees (February 1, 2020). Becker Friedman Institute for Research in Economics Working Paper No. 2018-33, Available at SSRN: https://ssrn.com/abstract=3179158 or http://dx.doi.org/10.2139/ssrn.3179158

Anjali Adukia (Contact Author)

University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

HOME PAGE: http://home.uchicago.edu/adukia

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