Desai: India jobs program should target low-income households, not districts
Data from the India Human Development Survey (IHDS) suggests that India’s flagship rural jobs program will not be successful in providing benefits to those who need it most, if it follows a suggested scheme to save money by operating only in the 200 poorest districts. IHDS found that nearly 70% of India’s poorest people actually live outside its poorest districts and would become ineligible for assistance under the proposed plan.
In a policy brief, MPRC Faculty Associate Sonalde Desai suggested that it would be more effective for the program to target households instead. “In the poorest districts, people are trying harder to piece together a livelihood with many different jobs. So, when they work in MGNREGA [the jobs program], they also have other work. In better-off districts, some people find better jobs. Those who are left out find work under MGNREGA programs and are consequently more reliant on them,” Desai explained.
The India Human Development Survey is a joint project of the National Council for Applied Economic Research (NCAER) and the University of Maryland. It is a survey of more than 41,000 households across India that provides national data on a wide range of important topics such as income levels, crime, marriage patterns, and household assets.