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This paper assesses inhowfar employment guarantees can support households in managing agricultural production risks. Using representative panel data for Andhra Pradesh, India, it analyzes the effects of the National Rural Employment Guarantee Scheme (NREGS) on households' crop choices. This paper shows that the introduction of the NREGS reduces households' uncertainty about future income streams because it provides reliable employment opportunities in rural areas independently of weather shocks and crop failure.
This paper assesses inhowfar employment guarantees can support households in managing agricultural production risks. Using representative panel data for Andhra Pradesh, India, it analyzes the effects of the National Rural Employment Guarantee Scheme (NREGS) on households' crop choices. This paper shows that the introduction of the NREGS reduces households' uncertainty about future income streams because it provides reliable employment opportunities in rural areas independently of weather shocks and crop failure.