A Tale of Two Programs : Assessing Treatment and Control in NREGA Studies

This paper revisits impact evaluation studies on the largest public workfare in the world, NREGA. In an environment where randomization is not feasible, I show why an impact evaluation exercise on NREGA should acknowledge the existence of an older...

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Bibliographic Details
Main Author: Bahal, Girish
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/undefined/123811635968088739/A-Tale-of-Two-Programs-Assessing-Treatment-and-Control-in-NREGA-Studies
http://hdl.handle.net/10986/36486
Description
Summary:This paper revisits impact evaluation studies on the largest public workfare in the world, NREGA. In an environment where randomization is not feasible, I show why an impact evaluation exercise on NREGA should acknowledge the existence of an older program, SGRY. Using novel district-level expenditure data on SGRY, this article shows how ignoring the older program is likely to underestimate the general equilibrium impact of the employment policy on various relevant socio-economic outcomes. In most cases, ignoring SGRY underestimates NREGA’s impact by 30–40 percent.