Physical Sciences and Mathematics Commons^™

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 …