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. Copyright Kluwer Academic Publishers 2000