Consistent with the theory of real options, it is argued that the value of the Employment Guarantee Scheme (EGS) in the Indian state of Maharashtra and its impact on workers’ behaviour do not depend so much on its income supplementation as on enlargement of opportunities in an uncertain environment of the local labour market. The choice between the EGS and other activities in rural areas is modelled in a dynamic optimisation framework that takes into account a fixed wage rate and certainty of...Expand abstract
- Discussion paper series
- Publication date:
- Local pid:
- Copyright date:
Option Values, Switches and Wages - An Analysis of the Employment Guarantee Scheme in India.
If you are the owner of this record, you can report an update to it here: Report update to this record