The Impact of MGNREGA on Agricultural Outcomes and the Rural Labour Market: A Matched DID Approach

This paper attempts to address the impact of the MGNREGA on the rural agricultural sector, focusing on cropping patterns, irrigated area, crop yields, wages and rural employment. The analysis is based on two data sources: the first is a unique district-season level panel dataset that we construct using multiple sources; and the second is unit-record data from the NSS Employment Unemployment Surveys. To identify causal effects, we employ a difference-indifference matching (DIDM) procedure, where districts are matched based on propensity scores; the use of propensity scores represents a novel aspect of this paper.