The performance of National Rural Employment Guarantee Scheme in Rajasthan was debated for its stupendous performance in the initial years of the scheme, but also for the relative sharp decline after 2010. Based on a large representative primary survey, this paper argues that the decline in performance of this scheme in Rajasthan is not entirely due to the lack of demand. Instead, the supply-driven top-down nature of the programme has led to a "discouraged worker" syndrome with workers showing disinterest in demanding work and passively waiting for availability of NREGS work.

An exogenously defined poverty line yields poverty headcounts between any two points in time that are a net outcome of the two-way traffic into and out of poverty. This paper argues that, for the rural Indian context, where housing is too lumpy and illiquid to be used for consumption smoothing, transitions in housing quality in cross-sectional data sets can provide revealed evidence of household perceptions of downside risk to their current consumption levels.