Arbeitspapier

Aggregate Effects from Public Works: Evidence from India

This paper explores the aggregate economic effects from India's National Rural Employment Guarantee Scheme (NREGS), which provides up to 100 days of labor to rural laborers at the mandated minimum wage. We examine the within-district change to night-time lights and banking deposits using the staggered program rollout for identification. We find consistent and robust evidence that NREGS increased aggregate economic output by 1-2% per capita measured by night-time lights. This effect, however, is not equal across districts. We observe no positive effect of the program in poorer districts, illuminating an important source of heterogeneity.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 13710

Classification
Wirtschaft
Macroeconomic Analyses of Economic Development
Technological Change: Government Policy
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Subject
NREGS
aggregate output

Event
Geistige Schöpfung
(who)
Cook, C. Justin
Shah, Manisha
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2020

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Cook, C. Justin
  • Shah, Manisha
  • Institute of Labor Economics (IZA)

Time of origin

  • 2020

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