Employment Guarantee and Household Income: Assessing the Impact of MGNREGA in Barpeta District, Assam

AbstractThis study examines the impact of the Mahatma Gandhi National Rural EmploymentGuarantee Act (MGNREGA) on household income in Barpeta district of Assam, India. Usingprimary data collected through structured field surveys from 450 rural households during2024-25, this research employs difference-in-differences estimation, propensity scorematching, and instrumental variable approaches to assess the causal effect of MGNREGAparticipation on annual household income. The findings reveal that MGNREGA participationincreases household income by approximately 18.4% (₹23,650 annually) on average, withparticularly pronounced effects for landless agricultural laborers and marginal farmers. Theprogram also demonstrates significant countercyclical income stabilization effects, providingcrucial wage employment during agricultural lean seasons. However, evidence of wagesuppression in the agricultural labor market and implementation challenges including delayedwage payments and limited women's participation warrant policy attention. The studycontributes empirical evidence on employment guarantee schemes' effectiveness in reducingrural income vulnerability and offers recommendations for improving program design andimplementation.