Volume 3, ISSUE1/2012 - Review of Applied Socio-Economic ...

________________________________________________________________________________________________
ISSN: 2247-6172
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 3, Issue 1/ 2012 ), pp. 23
URL: http://www.reaser.eu
e-mail: editors@reaser.eu
and irregular wages. The brick kiln workers, attached casual agricultural labourers etc. are the most
vulnerable. 4 The brick kiln workers are not allowed to leave work, even when some of them have no debt.
In 18 out of the 32 states and union territories where legislation on minimum wages applies, the minimum
permissible daily wage till recently was less than Rs 50; the level of minimum wages was above Rs.100 only
in four states. After October 2010, the rates in the central sphere have been revised, the minimum being Rs.
66.5 in Assam and the maximum Rs. 203/- in Delhi. Still in 11 states and Union Territories the minimum
rates are less than Rs. 100. 5 Even such low wages are not always paid. The seasonal variations in availability
of work, calamities of various kinds and socio-political conflicts adversely affect employment and
livelihoods on regular basis. 6
A number of programmes have been initiated to provide gainful employment, enhance rural peoples’ skills
and income, thus, to ensure their food security but without tangible and expected results. 7
The National Rural Employment Guarantee Act (now Mahatma Gandhi National Rural Employment
Guarantee Act) was implemented in February 2006, initially in 200 most backward districts spread over 27
states, in other 130 districts in 2007 (113 from 1 st April and 17 districts of Uttar Pradesh from 15 th May).
The entire country was covered from 1 st April 2008.
The Act guarantees to provide on demand minimum 100 days’ employment per household per year. It is
expected to have the additional benefit of developing infrastructure in the countryside. Unemployment
allowance has to be paid if work is not provided for any reason.
2. Objectives
This paper looks into the progress made in its implementation with the following specific objectives:
1. Impact of implementation of MGNREGA on employment generated and share of targeted groups,
2. Impact on wage differentials across activities and on non- MGNREGA works,
3. Impact of MGNREGA on rural food security, and,
4. Impact of MGNREGA on assets creation.
3. Data and methodology
Secondary data from the official websites 8 have been used for the last three years from 2008-09 onwards.
The primary data from 5 districts: Panipat, Ambalal, Rewari, Sirsa and Mewat were collected on stratified
random basis. From each district two villages – one within a radius of 5 kms and the other beyond 20 kms
were selected. From each village 25 respondents – 20 beneficiaries of MGNREGA and 5 non-beneficiaries
(control group) were selected for detailed enquiry. Additionally, data collected from 10 villages through
sarpanch/ Panchayat secretary/ village level government worker are used.
4. Demographic profile of the respondents
There are many striking features reflecting the socio-economic characteristics of the society. For example,
the gender ratio of 821 females per 1000 males (832 in beneficiary group as compared to 783 in non-
4 A. Joseph
5 Currently, the number of scheduled employments in the Central sphere is 45 whereas in the States sphere the number
is 1650 (when all states are counted). With effect from November 2009, the National Floor Level of Minimum Wage
has been increased to Rs 100 per day from Rs 80 per day (which was in effect since 2007). Recently with effect from
April 1, 2011 the National Floor Level of Minimum Wage has been raised to Rs 115 per day.
6 Economic Survey
7 C.H.Hanumantha Rao and P Rangaswamy
8 Jean Drèze and Christian Oldiges