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Does violent conflict affect the distribution of social welfare? Evidence from India's Mahatma Gandhi National Rural Employment Guarantee Act

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Koyuncu, M.

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What are the contentious political dynamics of the largest workfare program in the world, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of India? Combining quantitative analysis with a close reading of government documents and a survey of the existing literature, we suggest that the Indian government's counter-insurgency strategy against the Maoist unrest is a significant dynamic shaping the distribution of MGNREGA benefits. In our empirical analysis, we examine the effect of Maoist incidents on household income due to MGNREGA by merging a nationally representative household survey (Indian Human Development Survey-II) and a Maoist incidents dataset. Controlling for relevant household and district characteristics, we show that higher intensity of violent conflicts is associated with higher MGNREGA benefits. This result is robust to using a variety of alternative specifications and estimation methodologies.

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John Wiley and Sons Inc

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Manpower policy, Rural, Mahatma Gandhi, Guarantee

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Social Policy and Administration

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10.1111/spol.12899

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