Does workfare work? India's employment guarantee during COVID-19

As many other countries, India leverages on a pre-existing workfare programme as a COVID-19 response. We combine monthly administrative data with migration and poverty statistics and provide four insights on the recent expansion of the programme. First, poorer districts include more households, that is, increasing extensive margin. Second, in districts with a high proportion of return migrants, there is no increase, and third, unmet demand for work is higher than the national average of 22.7%. Fourth, despite the expansion, the programme provided just 13.5 days per rural household. The programme requires attention to fulfil its promise as a credible safety net.

Automated summary

India has utilized an existing workfare programme in response to the COVID-19 pandemic, with insights on the recent expansion including increased households in poorer districts, no increase in high migrant return districts, higher unmet demand for work, and only 13.5 days of work provided per rural household despite the expansion. Attention is needed for the programme to fulfill its promise as a credible safety net.