Programs that provide lower-skill employment are a popular anti-poverty strategy in developing countries, with India's employment-guarantee program (MGNREGA) employing adults in 23% of Indian households. A potential concern is that guaranteeing lower-skill employment opportunities may discourage investment in human capital and long-run income growth. Using large-scale administrative data and household survey data, I estimate precise spillover impacts on education that reject substantive declines in children's education from the government's rollout of MGNREGA. I estimate that these small negative impacts are inexpensive to counteract, particularly compared to MGNREGA expenditures on rural employment and poverty alleviation.
education, human capital, India, labor demand shock
Document Object Identifier (DOI)