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. A potential concern is 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. I estimate that these small negative impacts are inexpensive to counteract, particularly compared to MGNREGA expenditures on rural employment and poverty alleviation.

More Research From These Scholars

BFI Working Paper Apr 1, 2017

Sanitation and Education

Anjali Adukia
Topics:  Economic Mobility & Poverty
BFI Working Paper Mar 1, 2019

Educational Investment Responses to Economic Opportunity: Evidence from Indian Road Construction

Anjali Adukia, Sam Asher, Paul Novosad
Topics:  Early Childhood Education, Economic Mobility & Poverty, Employment & Wages, Healthcare, K-12 Education
BFI Working Paper Jan 1, 2019

Religion and Sanitation Practices

Anjali Adukia, Marcella Alsan, Kim Babiarz, Jeremy D. Goldhaber-Fiebert, Lea Prince
Topics:  Healthcare, Economic Mobility & Poverty