The Impact of India's Rural Employment Guarantee on Demand for Agricultural Technology

Anil K. Bhargava
ifpri discussion paper
This paper investigates whether this increase in the opportunity cost of agricultural labor incentivizes farm owners to adopt labor-saving agricultural technology. Using a regression discontinuity design and new Indian agricultural census data, this paper finds that NREGA causes a shift of roughly 20 percentage points away from labor-intensive technologies toward labor-saving ones, particularly for small farmers and low-powered technologies.