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Abstract
Using macro level data on MGNREGA performance in drought-prone states of Karnataka and Rajasthan as
well as in irrigation-dominated state of Andhra Pradesh, this study has revealed that the impact of MGNREGA
wage on the economic scarcity of labour is relatively modest when compared with the impact of hike in
non-farm wages. Even though the provision of food security through public distribution system has
contributed to the economic scarcity of labour, the relative hike in non-farm wages is contributing to higher
economic scarcity of labour rather than PDS and MGNREGA wages. The study has suggested subsidies
for farm mechanization should be provided in order to sustain food and livelihood security in the droughtprone
as well as irrigation-dominant states of India.