On the Targeting of the Employment Guarantee Scheme in the Indian State of Maharashtra

Contrary to a widely held view, the targeting of the Employment Guarantee Scheme in the Indian state of Maharashtra was unsatisfactory and worsened over the period 1979–89. Among the participants, from a large group the non-poor became the majority. Some of them were in fact (moderately) affluent. The share of female participants – especially of poor female participants – also diminished. As a result, the overall share of poor in EGS earnings fell sharply. Although a greater targeting accuracy does not necessarily imply a greater poverty impact for a given outlay, some improvements in the design and implementation of this scheme are likely to enhance both. This revised version was published online in July 2006 with corrections to the Cover Date.