Work, Welfare, and the State: The Dialectics of MGNREGA in Reshaping Rural Labour Markets: 25166
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https://doi.org/10.35716/IJED-25166
Author: Sandeep Tripathi, Pushpender Yadav, Saurabh Bharne, Hariom Tiwari
Author Address: Department of Humanities and Social Sciences, Maulana Azad National Institute of Technology, Bhopal-462003 (Madhya Pradesh)
Abstract
This study
investigated how MGNREGA reshapes rural labour markets within India’s
neoliberal governance framework by countering labour commodification. Anchored
in a political economy framework, the study analysed panel data from 28 states
(2016-17 to 2023-24) using fixed- and random-effects models and finds
significant positive effects on labour market outcomes. Wage expenditure significantly
increased labour force participation rate (? = 0.088) and worker participation
rate (? = 0.140). Average person-days per household significantly improve both
LFPR (? = 1.241) and WPR (? = 1.539). However, the unemployment rate results
showed mixed effects, revealing heterogeneity in implementation across states.
These findings demonstrated MGNREGA’s effectiveness as a buffer against labour-market
precarity while operating within neoliberal constraints, supporting arguments
for state-led employment guarantees to counter labour flexibilisation.
Keywords
Commodification, fixed-random effects, labour flexibilisation, MGNREGA.
JEL Codes
I38; D63; J48; O15