MGNREGS Implementations and the Dynamics of Rural Labour Markets

2014

This study has evaluated the differentiating impact of MGNREGA on the extent of fulfilment of the basic entitlements such as days of employment, wages and earnings and the extent of coverage of social groups like dalits, adivasis and women and poverty alleviation. This study has disaggregated state level data to discern the factors that make a difference to the performance. Also some micro level scenarios are presented based on the reports of focus group discussions (FGDs) in the villages of Andhra Pradesh. There is growing evidence of an increase in agricultural wages across the country over the period between 2006-07 and2011-12, in which the impact of MGNREGA is considerable. This review has also revealed a steep increase in female agriculture wage and a substantive decline in the male-female wage gap. The search for information on the impact of MGNREGA on agricultural labor markets leads to some evidence on labor shortage, changes in wages, mechanization, peak season adjustment of work or adoption of MGNREGA calendar and migration. The absolute decline in labor force has tightened the rural labor market leading to shortage of labor for farm operations. Thus labor scarcity has emerged as one of the major constraints to increase agricultural production in India. Furthermore, the tightened labor market has offered, better bargaining power to agricultural laborers, better treatment at the place of work, ability to negotiate the duration of the working day and has initiated a growing shift towards piece rate or contract work on agriculture facilitating change in the number of working days. Based on macro level results and micro level evidence some policy interventions are suggested-such as development of labor saving technologies and machines to mitigate labor scarcity, an inclusive farm mechanization program especially for women and youth, strengthening ruralurban connectivity, social protection for migrant labor and Capacity building programs for skill augmentation. Further, a revision of the time frame of MGNREGA work to create more employment in the lean season has been recommended.

International Journal of Advance Research, Ideas and Innovations in Technology, 2018

"An Act to provide for the enhancement of livelihood security of the households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in every financial year to every household whose adult members volunteer to do unskilled manual work and for matters connected there with or incidental there to." ABSTRACT Twelve years since its inception, this law has shown extraordinary promise. It has brought the right to work to the front stage of the discussion on social protection. MGNREGA represents, a significant innovation in relation to the short-term and emergency based public work tradition. Among its innovation key ones include {a} self-targeting-this means that the programme does not target people living below the poverty line. It is the nature of the work provided manual and unskilled-that determine the demand for work. {b} any household can demand upto 100 days of work that should be provided within 15 days under the penalty of the state having to pay unemployment benefits. {c} the inclusion of social audits and social accountability mechanism to increase accountability and enhance social participation. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)-offering up to 100 days work each year to rural Indians-is the largest social protection programme in the world, in terms of the number of households covered. There is a lively debate around whether MGNREGA provides a vital social safety net for the poor or merely burdens the economy. Since 2006, it has expanded to cover all districts in India, providing work to 50 million rural households in 2012/13 at a cost of US$8.9 billion. But no one has satisfactorily explained why, despite similar implementation mechanisms, there is such unevenness in outcomes. Major constraints faced by beneficiaries in MGNREGA were: employment of hundred days (per household per year) is too less in the present situation. The major suggestion was given by beneficiaries that temporary suspension of MGNREGA works during peak Agricultural season (93.33%).

Journal of Landscape System & Ecological Studies (vol.34, no.2)

This study has evaluated the differentiating impact of MGNREGA on the extent of fulfilment of the basic entitlements such as days of employment, wages and earnings and the extent of coverage of social groups like dalits, adivasis and women and poverty alleviation. This study has disaggregated state level data to discern the factors that make a difference to the performance. Also some micro level scenarios are presented based on the reports of focus group discussions (FGDs) in the villages of Andhra Pradesh. There is growing evidence of an increase in agricultural wages across the country over the period between 2006-07 and2011-12, in which the impact of MGNREGA is considerable. This review has also revealed a steep increase in female agriculture wage and a substantive decline in the male-female wage gap. The search for information on the impact of MGNREGA on agricultural labor markets leads to some evidence on labor shortage, changes in wages, mechanization, peak season adjustment of work or adoption of MGNREGA calendar and migration. The absolute decline in labor force has tightened the rural labor market leading to shortage of labor for farm operations. Thus labor scarcity has emerged as one of the major constraints to increase agricultural production in India. Furthermore, the tightened labor market has offered, better bargaining power to agricultural laborers, better treatment at the place of work, ability to negotiate the duration of the working day and has initiated a growing shift towards piece rate or contract work on agriculture facilitating change in the number of working days. Based on macro level results and micro level evidence some policy interventions are suggested-such as development of labor saving technologies and machines to mitigate labor scarcity, an inclusive farm mechanization program especially for women and youth, strengthening ruralurban connectivity, social protection for migrant labor and Capacity building programs for skill augmentation. Further, a revision of the time frame of MGNREGA work to create more employment in the lean season has been recommended.

Current Issues in the Economy and Finance of India, Springer Nature, 2018

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) can be construed as an opportunity for revitalising agriculture, restoration of ecosystems besides providing livelihood security to the poor and unemployed. The eight categories of works under MGNREGA largely address the key concerns of agriculture. MGNREGS aimed at enhancement of livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work and to create durable assets and thereby strengthen the natural resource base (NREGA, Operational Guidelines, 2008). MGNREGS, India’s main public works programme is unique, being large in size and intended to cover long periods, disburse huge funds and be dynamically responsive to climatic and rainfall conditions. The study has concluded that for both male and female workers in rural areas, the MGNREGS has made a difference in terms of increasing the wage rates for casual work. The real wages increased for both male and female workers and indeed more rapidly for female workers. They also argued that during 2004-05 and 2007-08 person days of employment of rural women in public works increased around 4.4 times, a remarkable shift in terms of involvement in paid work. This was possible because there is hardly any gender gap in the wages paid and secondly, average wages received in MGNREGS were significantly higher than those received by casual labour in other kinds of work. It was found that there is a reduction in the gender wage gap due to the MGNREGS. The impact is direct in terms of the higher wages paid to women in this scheme; indirect in terms of the effects on women workers’ reservation wages and bargaining power. Finally, it can be concluded that despite limitations, the scheme has positive effects on women workers in rural labour markets. It has caused real wages to rise, gender gaps to come down and open unemployment rates of women to decrease. Another important change that has been observed is that there is a tremendous improvement in micro irrigation through Kapildara wells and Medbandhan (field bunding) which has become a success in the state and resulted in changes in cropping pattern and established that the resources can be used in a sustainable manner. It was suggested to enhance public investment in irrigation, rejuvenation of dry land areas through soil and water conservation, revamping agricultural research and extension, developing market infrastructure including transport and cold storage etc. Further, to ensure the quality and permanent assets convergence of various programmes with concomitant funds, techniques, human resources and institutions is needed.