MGNREGA’s Effect on Household Level Consumption Expenditure: An Analysis

Abstract

Using a difference-in-difference approach, this study aims to measure the effect of the Mahatma Gandhi National Rural Employment Guarantee Act program on the amount and pattern of rural families' consumption expenditures at the national level. The results show that participant households' monthly per capita consumption spending has increased, and their consumption patterns have changed, with a greater proportion of high-value and nutrient-rich foods in their consumption basket. Additionally, by making investments in assets like durable items, the participating households have smoothed their consumption.