Linkage between Microfinance participation and securing Employment through MGNREGP

Kundu, AMIT (2012): Linkage between Microfinance participation and securing Employment through MGNREGP. Published in: Indian Journal of Economics and Research , Vol. 2, No. January -February 2013 (14 January 2013): pp. 22-29.

Abstract

In this paper the relationship is assessed between participation in microfinance program under SGSY scheme through forming Self-Help Group and getting employment through Mahatma Gandhi National Rural Employment Guarantee Program (MGNREGP). Using Tobit Model with endogenous covariate method it is established that participation in microfinance program operating through joint liability credit contract help the rural households mainly the women to generate more social capital than the non-participant households which ultimately help them to get more information about different developmental program like MGNREGP initiated by the government. Hence, it came out from our investigation that microfinance participant member households get more number of man-days of employment through MGNREGP than the non-member households. It is also established from our investigation that households with higher average monthly income and less dependency ratio are less prone to demand job under MGNREGP.

• Item Type: MPRA Paper
• Language: English
• Keywords: Mahatma Gandhi National Rural Employment Guarantee Program, Microfinance, Self-Help Group, Social Capital
• Subjects: J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J21 - Labor Force and Employment, Size, and Structure; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C24 - Truncated and Censored Models ; Switching Regression Models ; Threshold Regression Models; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P25 - Urban, Rural, and Regional Economics; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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