MGNREGA scheme led to decline in gender wage gap in rural India: ILO
- IBEF
- February 19, 2024
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has significantly contributed to narrowing gender wage gaps and improving compliance with minimum wage regulations in rural India, as highlighted in the latest working paper by the International Labour Organisation (ILO). The study underscores the positive outcomes of the NREGS program, indicating a decline in gender wage disparities and a reduction in the wage gap between formal salaried workers and casual laborers in rural areas. However, the ILO notes regional variations in the program's impact, emphasizing the necessity for effective grassroots implementation to transform rural populations' lives.
Despite these positive trends, the ILO's analysis reveals concerning developments in the purchasing power of rural wages. The Economic Survey 2022–23 notes a negative growth in real rural wages, adjusted for inflation, due to elevated inflation levels between April and November 2022. The paper, drawing from statistical evidence across 58 countries, emphasizes the challenges faced by rural workers, who earn, on average, 24% less than their urban counterparts on an hourly basis. Institutional and regulatory frameworks, particularly those addressing minimum wages and equal opportunities, are highlighted as essential in reducing labor market inequalities between rural and urban areas.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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