Abstract for:Is ‘rural employment guarantee’ effective in providing sustainable livelihood? An Analysis using a System Dynamic Model

The present study seeks to evaluate the effectiveness of world’s largest employment guarantee program in provisioning of sustainable livelihood options to local unskilled laborers. The study is part of the performance assessment of Mahatma Gandhi Employment Guarantee Scheme (MGNREGS). We have tried to design a system dynamics model to understand the cause and effect relationships and interactions between various variables associated with MGNREGS and its implementation processes. The primary purpose of the scheme is two folds – first, is to provide employment to those who seek it and second, to enhance the livelihood security of an area by generating quality durable assets. It is assumed that new quality durable assets would supplement the livelihood options already available to the local people in an area, hence reducing the distress temporary migration they undertake in search of employment. Our model tried to capture the above theme of the scheme with systems method. The simulation result indicate that if there are fewer employment generating assets in an area, then people tend to temporarily migrate to near-by places to fulfill their employment needs.