Publication:
Is Workfare Cost-Effective against Poverty in a Poor Labor-Surplus Economy?

Simple item page
dc.contributor.authorMurgai, Rinku
dc.contributor.authorRavallion, Martin
dc.contributor.authorvan de Walle, Dominique
dc.date.accessioned2014-02-04T20:12:39Z
dc.date.available2014-02-04T20:12:39Z
dc.date.issued2013-10
dc.description.abstractWorkfare schemes impose work requirements on beneficiaries. This has seemed an attractive idea for self-targeting transfers to poor people. This incentive argument does not imply, however, that workfare is more cost-effective against poverty than even poorly-targeted options, given hidden costs of participation. In particular, even poor workfare participants in a labor-surplus economy can be expected to have some forgone income when they take up such a scheme. A survey-based method is used to assess the cost-effectiveness of India's Employment Guarantee Scheme in Bihar. Participants are found to have forgone earnings, although these fall well short of market wages on average. Factoring in these hidden costs, the paper finds that for the same budget, workfare has less impact on poverty than either a basic-income scheme (providing the same transfer to all) or uniform transfers based on the government's below-poverty-line ration cards. For workfare to dominate other options, it would have to work better in practice. Reforms would need to reduce the substantial unmet demand for work, close the gap between stipulated wages and wages received, and ensure that workfare is productive -- that the assets created are of value to poor people. Cost-effectiveness would need to be reassessed at the implied higher levels of funding.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/10/18425307/workfare-cost-effective-against-poverty-poor-labor-surplus-economy
dc.identifier.doi10.1596/1813-9450-6673
dc.identifier.urihttps://hdl.handle.net/10986/16888
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6673
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectADJUSTMENT PROCESS
dc.subjectAGRICULTURAL WAGE
dc.subjectAGRICULTURAL WAGES
dc.subjectANTI-POVERTY
dc.subjectATTRITION
dc.subjectAVERAGE UNEMPLOYMENT
dc.subjectAVERAGE WAGE
dc.subjectBARGAINING POWER
dc.subjectCASH TRANSFERS
dc.subjectCASUAL WORKERS
dc.subjectCATCHMENT AREA
dc.subjectCONSUMER PRICE INDEX
dc.subjectCOST EFFECTIVENESS
dc.subjectCOST-EFFECTIVENESS
dc.subjectCOUNTERFACTUAL
dc.subjectDEMOCRACY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDIVIDEND
dc.subjectDROUGHT
dc.subjectEARNING
dc.subjectECONOMETRICS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMICS
dc.subjectEGS
dc.subjectEMPLOYMENT EFFECTS
dc.subjectEMPLOYMENT GUARANTEE
dc.subjectEMPLOYMENT GUARANTEE SCHEME
dc.subjectEMPLOYMENT GUARANTEE SCHEMES
dc.subjectEMPLOYMENT OPPORTUNITIES
dc.subjectEMPLOYMENT PROGRAMS
dc.subjectFACTORING
dc.subjectFAMINE
dc.subjectFARM WORK
dc.subjectFARMERS
dc.subjectFINDING WORK
dc.subjectFOOD SECURITY
dc.subjectFOOD SUBSIDIES
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGROSS WAGES
dc.subjectHIGH UNEMPLOYMENT
dc.subjectHUMAN CAPITAL
dc.subjectHUMAN DEVELOPMENT
dc.subjectHUMAN RESOURCES
dc.subjectIMPACT ON POVERTY
dc.subjectINCOME
dc.subjectINCOME COUNTRIES
dc.subjectINCOMES
dc.subjectINFLATION
dc.subjectJOBS
dc.subjectLABORERS
dc.subjectLABOUR
dc.subjectLACK OF INFORMATION
dc.subjectLAWS
dc.subjectLOCAL LABOR MARKETS
dc.subjectLOW INCOME
dc.subjectMALE WORKERS
dc.subjectMANPOWER
dc.subjectMANPOWER POLICY
dc.subjectMANUAL LABOR
dc.subjectMARKET WAGE
dc.subjectMARKET WAGES
dc.subjectMINIMUM WAGE
dc.subjectMONOPSONY
dc.subjectMONOPSONY POWER
dc.subjectNATIONAL INCOME
dc.subjectNET INCOME
dc.subjectNON-WAGE COSTS
dc.subjectOLD AGE
dc.subjectOPPORTUNITY COSTS
dc.subjectOUTPUTS
dc.subjectPER CAPITA CONSUMPTION
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL PARTICIPATION
dc.subjectPOOR
dc.subjectPOOR FAMILIES
dc.subjectPOOR HOUSEHOLDS
dc.subjectPOOR PEOPLE
dc.subjectPOOR RURAL HOUSEHOLDS
dc.subjectPOST-REFORM
dc.subjectPOVERTY ALLEVIATION
dc.subjectPOVERTY IMPACT
dc.subjectPOVERTY LINE
dc.subjectPOVERTY LINES
dc.subjectPOVERTY MEASURES
dc.subjectPOVERTY RATES
dc.subjectPOVERTY REDUCTION
dc.subjectPOVERTY STATUS
dc.subjectPRESENT EVIDENCE
dc.subjectPRIVATE EMPLOYMENT
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATE SECTOR WAGES
dc.subjectPRODUCTIVITY
dc.subjectPUBLIC EMPLOYMENT
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC SERVICES
dc.subjectPUBLIC SPENDING
dc.subjectPUBLIC WORKS
dc.subjectPUBLIC WORKS PROGRAM
dc.subjectPUBLIC WORKS SCHEMES
dc.subjectRATION SHOPS
dc.subjectRESOURCE ALLOCATION
dc.subjectRIGHT TO WORK
dc.subjectRURAL
dc.subjectRURAL AREAS
dc.subjectRURAL DEVELOPMENT
dc.subjectRURAL ECONOMY
dc.subjectRURAL EMPLOYMENT
dc.subjectRURAL FARM
dc.subjectRURAL HOUSEHOLD
dc.subjectRURAL LABOR
dc.subjectRURAL LABOR MARKET
dc.subjectRURAL POOR
dc.subjectRURAL POPULATION
dc.subjectRURAL POVERTY
dc.subjectRURAL PUBLIC
dc.subjectRURAL UNEMPLOYMENT
dc.subjectRURAL WATER
dc.subjectRURAL WORKERS
dc.subjectSOCIAL SECURITY
dc.subjectTARGETING
dc.subjectTAXATION
dc.subjectTOTAL WAGE
dc.subjectTOTAL WAGES
dc.subjectTOTAL WORKERS
dc.subjectTRANSFER BENEFITS
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATE
dc.subjectUNEMPLOYMENT RATES
dc.subjectUNINTENDED BENEFICIARIES
dc.subjectVILLAGE LEADERS
dc.subjectWAGE BARGAINING
dc.subjectWAGE DATA
dc.subjectWAGE DISTRIBUTION
dc.subjectWAGE FLOOR
dc.subjectWAGE GAINS
dc.subjectWAGE INCREASE
dc.subjectWAGE RATE
dc.subjectWAGE RATES
dc.subjectWELFARE RECIPIENTS
dc.subjectWOMEN WORKERS
dc.subjectWORK ACTIVITY
dc.subjectWORKER
dc.subjectWORKFARE PARTICIPANTS
dc.subjectNREGA
dc.subjectforgone income
dc.titleIs Workfare Cost-Effective against Poverty in a Poor Labor-Surplus Economy?en
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleIs Workfare Cost-Effective against Poverty in a Poor Labor-Surplus Economy?
okr.date.disclosure2013-10-01
okr.date.doiregistration2025-04-10T11:44:38.450196Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/10/18425307/workfare-cost-effective-against-poverty-poor-labor-surplus-economy
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticePoverty
okr.globalpracticeFinance and Markets
okr.guid922511468269114807
okr.identifier.doi10.1596/1813-9450-6673
okr.identifier.externaldocumentum000158349_20131022171720
okr.identifier.internaldocumentum18425307
okr.identifier.reportWPS6673
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/10/22/000158349_20131022171720/Rendered/PDF/WPS6673.pdfen
okr.region.administrativeSouth Asia
okr.region.countryIndia
okr.region.geographicalSouth Asia
okr.sectorAgriculture, fishing, and forestry :: General agriculture, fishing and forestry sector
okr.themeRural development :: Other rural development
okr.topicPoverty Reduction::Rural Poverty Reduction
okr.topicMacroeconomics and Economic Growth::Income
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development
okr.unitEconomic Policy Unit, South Asia Region; and the Human Development and Public Services Team, Development Research Group
okr.volume1 of 1
relation.isAuthorOfPublicationd53ceb26-d2be-50fc-a6b3-5bd777691c9c
relation.isAuthorOfPublication.latestForDiscoveryd53ceb26-d2be-50fc-a6b3-5bd777691c9c
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
WPS6673.pdf
Size:
709.75 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
WPS6673.txt
Size:
117.47 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers