MGNREGA Impact on Agricultural Wage and Rural Labour Market in Kerala

Abstract

MGNREGA can be considered as a strategy for inclusive growth by providing sustainable livelihood opportunities to the unskilled rural poor in India who were excluded from social and economic strata. It also serves as an instrument for social protection by preventing deprivation and poverty among the marginalised, by allowing them to participate in Economic activities, and making transformation in the lives through legal provisions guaranteed under MGNREGA. Studies showed that MGNREGA has made significant changes in the lives of both category of workers who work under MGNREGA and the rural agricultural workers in the form of enhanced wage rate and standard of living. This study entirely focused on the positive impact of MGNREGA on the agricultural wage in Kerala. Study found that agricultural wage for both female and male workers are positively related to the wage rate under MGNREGA. Male agricultural wage rate is found to be highly sensitive to MGNREGA wage compared to female agricultural wage rate. MGNREGA can bring significant changes in the structure of labour market in the form of social cohesion among different class of people.