Work, Welfare, and the State: The Dialectics of MGNREGA in Reshaping Rural Labour Markets

This study investigated how MGNREGA reshapes rural labour markets within India's neoliberal governance framework by countering labour commodification. Anchored in a political economy framework, the study analysed panel data from 28 states (2016-17 to 2023-24) using fixed- and random-effects models and finds significant positive effects on labour market outcomes. Wage expenditure significantly increased labour force participation rate (? = 0.088) and worker participation rate (? = 0.140). Average person-days per household significantly improve both LFPR (? = 1.241) and WPR (? = 1.539). However, the unemployment rate results showed mixed effects, revealing heterogeneity in implementation across states. These findings demonstrated MGNREGA's effectiveness as a buffer against labour-market precarity while operating within neoliberal constraints, supporting arguments for state-led employment guarantees to counter labour flexibilisation.