What Determines Labour Force Participation in MGNREGA? An Investigation in Odisha

A decade has elapsed since the inception of the MGNREGA. While this scheme has been able to act as viable source of alternative rural employment, the major challenge pertains to job demand and employment creation by as much as stipulated. The present study aims to identify factors influencing the incidence and extent of household participation in MGNREGA in Mayurbhanj and Ganjam districts of Odisha. The findings suggest that ‘clientelism’ is an overriding force under MGNREGA, indicating thereby that this scheme is a potent means to create ‘political society’. It is the awareness of the prospective benefits of a job card that motivates people to exhibit their willingness to have it and to get access. This awareness leads to creation of employment for those seeking jobs. The results also signal the possibility of ‘elite capture’. Households possessing more land holdings may possess job cards, despite demanding fewer jobs, as they seem to be influential in rural social–political milieu. However, the programme appears to be pro-poor and gender-sensitive. In order to make it more effective, it may be necessary to overcome the possibilities of ‘clientelism’ and ‘elite capture’, and improve the awareness level.