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Public Works Programmes And Agricultural Risk: Evidence From India, Vis Taraz
Public Works Programmes And Agricultural Risk: Evidence From India, Vis Taraz
Environmental Science and Policy: Faculty Publications
The agricultural sectors in many low-and middle-income countries remain highly vulnerable to weather risk, a vulnerability that will only intensify under climate change. The globally trending public works programmes have the potential to impact weather-related agricultural risk. I explore the impact of India's National Rural Employment Guarantee Act (NREGA) on weather-related agricultural risk. My empirical strategy explores the staggered roll-out of NREGA and random weather fluctuations. Using a nationwide panel of data, I find that NREGA makes crop yields more sensitive to low rainfall shocks. I posit that these results are consistent with a labour market channel, by which NREGA …