Work, Welfare, and the State: The Dialectics of MGNREGA in Reshaping Rural Labour Markets
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Author: Sandeep Tripathi, Pushpender Yadav, Saurabh Bharne and Hariom Tiwari
Author Address: Research Scholars and Associate Professor, Department of Humanities and Social Sciences, Maulana Azad National Institute of Technology, Bhopal-462003 (Madhya Pradesh)
Keywords: Commodification, fixed-random effects, labour flexibilisation, MGNREGA.
JEL Codes: I38; D63; J48; O15.
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.
Description
Indian J Econ Dev, 2026, 22(1), 74-84
https://doi.org/10.35716/IJED-25166
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