The Impact of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on Rural Labor Markets and Agriculture

This article reviews the impact and effectiveness in implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) at state level as well as at village level with focus on inclusiveness, rural labor markets and agriculture. The paper finds that some states are more effective in implementation then others. The states which effectively integrated MGNREGA works with local planning gained much in terms of employment generation and asset creation leading to increased agricultural potential. The scheme is more inclusive of vulnerable sections of the society including scheduled castes and tribes and also women. Study also highlight the village level differences in implementation and effective implementation leads to reduction of hunger and poverty. More importantly the scheme increased bargaining power of rural laborer in agricultural sector, resulted in higher wage rates, better work environment and less exploitatio