Guaranteed Employment in Rural India: Intrahousehold Labor and Resource Allocation Consequences
2026-04-29
I investigate the intrahousehold labor and resource allocation consequences of an employment guarantee targeting rural households in India. The guarantee insures household earnings, replacing women as added workers and shutting down a motive for saving. Despite sizable program-job take-up, the guarantee decreases participation in other working activities and, thus, labor force participation of married women and total time worked by their husbands. The guarantee accounts for up to 30 percent of a recent countrywide decrease in rural female labor force participation. Though it increases household consumption, the guarantee reduces the command of women’s household earnings and, thereby, their well-being. (JEL D13, G51, I32, J16, J22, J68, O12)