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

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Murgai, Rinku
dc.contributor.author
Ravallion, Martin
dc.contributor.author
van de Walle, Dominique
dc.date.accessioned
2014-02-04T20:12:39Z
dc.date.available
2014-02-04T20:12:39Z
dc.date.issued
2013-10
dc.date.lastModified
2021-04-23T14:03:32Z
dc.description.abstract
Workfare 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.identifier
http://documents.worldbank.org/curated/en/2013/10/18425307/workfare-cost-effective-against-poverty-poor-labor-surplus-economy
dc.identifier.uri
http://hdl.handle.net/10986/16888
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 6673
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ACCOUNTING
dc.subject
ADJUSTMENT PROCESS
dc.subject
AGRICULTURAL WAGE
dc.subject
AGRICULTURAL WAGES
dc.subject
ANTI-POVERTY
dc.subject
ATTRITION
dc.subject
AVERAGE UNEMPLOYMENT
dc.subject
AVERAGE WAGE
dc.subject
BARGAINING POWER
dc.subject
CASH TRANSFERS
dc.subject
CASUAL WORKERS
dc.subject
CATCHMENT AREA
dc.subject
CONSUMER PRICE INDEX
dc.subject
COST EFFECTIVENESS
dc.subject
COST-EFFECTIVENESS
dc.subject
COUNTERFACTUAL
dc.subject
DEMOCRACY
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
DIVIDEND
dc.subject
DROUGHT
dc.subject
EARNING
dc.subject
ECONOMETRICS
dc.subject
ECONOMIC GROWTH
dc.subject
ECONOMICS
dc.subject
EGS
dc.subject
EMPLOYMENT EFFECTS
dc.subject
EMPLOYMENT GUARANTEE
dc.subject
EMPLOYMENT GUARANTEE SCHEME
dc.subject
EMPLOYMENT GUARANTEE SCHEMES
dc.subject
EMPLOYMENT OPPORTUNITIES
dc.subject
EMPLOYMENT PROGRAMS
dc.subject
FACTORING
dc.subject
FAMINE
dc.subject
FARM WORK
dc.subject
FARMERS
dc.subject
FINDING WORK
dc.subject
FOOD SECURITY
dc.subject
FOOD SUBSIDIES
dc.subject
GENERAL EQUILIBRIUM
dc.subject
GROSS WAGES
dc.subject
HIGH UNEMPLOYMENT
dc.subject
HUMAN CAPITAL
dc.subject
HUMAN DEVELOPMENT
dc.subject
HUMAN RESOURCES
dc.subject
IMPACT ON POVERTY
dc.subject
INCOME
dc.subject
INCOME COUNTRIES
dc.subject
INCOMES
dc.subject
INFLATION
dc.subject
JOBS
dc.subject
LABORERS
dc.subject
LABOUR
dc.subject
LACK OF INFORMATION
dc.subject
LAWS
dc.subject
LOCAL LABOR MARKETS
dc.subject
LOW INCOME
dc.subject
MALE WORKERS
dc.subject
MANPOWER
dc.subject
MANPOWER POLICY
dc.subject
MANUAL LABOR
dc.subject
MARKET WAGE
dc.subject
MARKET WAGES
dc.subject
MINIMUM WAGE
dc.subject
MONOPSONY
dc.subject
MONOPSONY POWER
dc.subject
NATIONAL INCOME
dc.subject
NET INCOME
dc.subject
NON-WAGE COSTS
dc.subject
OLD AGE
dc.subject
OPPORTUNITY COSTS
dc.subject
OUTPUTS
dc.subject
PER CAPITA CONSUMPTION
dc.subject
POLITICAL ECONOMY
dc.subject
POLITICAL PARTICIPATION
dc.subject
POOR
dc.subject
POOR FAMILIES
dc.subject
POOR HOUSEHOLDS
dc.subject
POOR PEOPLE
dc.subject
POOR RURAL HOUSEHOLDS
dc.subject
POST-REFORM
dc.subject
POVERTY ALLEVIATION
dc.subject
POVERTY IMPACT
dc.subject
POVERTY LINE
dc.subject
POVERTY LINES
dc.subject
POVERTY MEASURES
dc.subject
POVERTY RATES
dc.subject
POVERTY REDUCTION
dc.subject
POVERTY STATUS
dc.subject
PRESENT EVIDENCE
dc.subject
PRIVATE EMPLOYMENT
dc.subject
PRIVATE SECTOR
dc.subject
PRIVATE SECTOR WAGES
dc.subject
PRODUCTIVITY
dc.subject
PUBLIC EMPLOYMENT
dc.subject
PUBLIC EXPENDITURES
dc.subject
PUBLIC SERVICES
dc.subject
PUBLIC SPENDING
dc.subject
PUBLIC WORKS
dc.subject
PUBLIC WORKS PROGRAM
dc.subject
PUBLIC WORKS SCHEMES
dc.subject
RATION SHOPS
dc.subject
RESOURCE ALLOCATION
dc.subject
RIGHT TO WORK
dc.subject
RURAL
dc.subject
RURAL AREAS
dc.subject
RURAL DEVELOPMENT
dc.subject
RURAL ECONOMY
dc.subject
RURAL EMPLOYMENT
dc.subject
RURAL FARM
dc.subject
RURAL HOUSEHOLD
dc.subject
RURAL LABOR
dc.subject
RURAL LABOR MARKET
dc.subject
RURAL POOR
dc.subject
RURAL POPULATION
dc.subject
RURAL POVERTY
dc.subject
RURAL PUBLIC
dc.subject
RURAL UNEMPLOYMENT
dc.subject
RURAL WATER
dc.subject
RURAL WORKERS
dc.subject
SOCIAL SECURITY
dc.subject
TARGETING
dc.subject
TAXATION
dc.subject
TOTAL WAGE
dc.subject
TOTAL WAGES
dc.subject
TOTAL WORKERS
dc.subject
TRANSFER BENEFITS
dc.subject
UNEMPLOYED
dc.subject
UNEMPLOYMENT
dc.subject
UNEMPLOYMENT RATE
dc.subject
UNEMPLOYMENT RATES
dc.subject
UNINTENDED BENEFICIARIES
dc.subject
VILLAGE LEADERS
dc.subject
WAGE BARGAINING
dc.subject
WAGE DATA
dc.subject
WAGE DISTRIBUTION
dc.subject
WAGE FLOOR
dc.subject
WAGE GAINS
dc.subject
WAGE INCREASE
dc.subject
WAGE RATE
dc.subject
WAGE RATES
dc.subject
WELFARE RECIPIENTS
dc.subject
WOMEN WORKERS
dc.subject
WORK ACTIVITY
dc.subject
WORKER
dc.subject
WORKFARE PARTICIPANTS
dc.subject
NREGA
dc.subject
forgone income
dc.title
Is Workfare Cost-Effective against Poverty in a Poor Labor-Surplus Economy?
en
okr.crosscuttingsolutionarea
Jobs
okr.date.disclosure
2013-10-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2013/10/18425307/workfare-cost-effective-against-poverty-poor-labor-surplus-economy
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Social Protection and Labor
okr.globalpractice
Poverty
okr.globalpractice
Finance and Markets
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6673
okr.identifier.externaldocumentum
000158349_20131022171720
okr.identifier.internaldocumentum
18425307
okr.identifier.report
WPS6673
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/10/22/000158349_20131022171720/Rendered/PDF/WPS6673.pdf
en
okr.region.administrative
South Asia
okr.region.country
India
okr.region.geographical
South Asia
okr.sector
Agriculture, fishing, and forestry :: General agriculture, fishing and forestry sector
okr.theme
Rural development :: Other rural development
okr.topic
Poverty Reduction :: Rural Poverty Reduction
okr.topic
Macroeconomics and Economic Growth :: Income
okr.topic
Social Protections and Labor :: Labor Markets
okr.topic
Social Protections and Labor :: Labor Policies
okr.topic
Banks and Banking Reform
okr.topic
Finance and Financial Sector Development
okr.unit
Economic Policy Unit, South Asia Region; and the Human Development and Public Services Team, Development Research Group
okr.volume
1 of 1

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