Can Multi-Sectoral Development Interventions Boost Livelihoods and Women’s Labor Supply? Evidence from NRLM in India

Abstract

ABSTRACT Diversifying household livelihoods and increasing women’s labor force participation is a major developmental challenge in South Asia. Multi-sectoral development approaches can provide better economic opportunities and women’s employment simultaneously. This study provides evidence on the livelihoods and women’s labor supply impacts of the National Rural Livelihoods Mission (NRLM), a $5.1 billion livelihoods initiative. The study matches primary data from 4,202 households and 726 villages using the 2011 Population Census and the 2012 Socio-Economic and Caste Census. The instrumental variable estimates suggest that participation in NRLM is associated with an improvement in the number of household livelihoods by 0.707, livelihood diversification by 0.13σ, and women’s working participation rate (WPR) by 15.4 percent. The study identifies two sets of channels, namely, formation of productive assets and access to formal credit, through which NRLM influenced livelihoods and women’s WPR. Heterogeneous program effects suggest that women in socially and economically deprived households benefitted most. HIGHLIGHTS The study highlights India’s National Rural Livelihoods Mission (NRLM), the world’s largest livelihoods initiative. NRLM improved opportunities for women’s gainful employment in farm and nonfarm productive activities. The program’s impact reflects the efficacy of multi-sectoral development interventions. It relies on a unique multi-sectoral approach that mobilizes rural poor women into SHGs and their federations. The study argues for interventions that influence gender roles in the context of rural growth and development.