The Lasting Effects of Working while in School: A Long-Term Follow-Up

Mery Ferrando, Noemi Katzkowicz, Diego Ubfal and Thomas Le Barbanchon

No 20798, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper provides the first experimental evidence on the long-term effects of work-study programs, leveraging a randomized lottery design from a national program in Uruguay. Participation leads to a persistent 11 percent increase in formal labor earnings seven years after the program, driven by a 4 percent increase in the monthly probability of being employed and a 6 percent increase in monthly wages. Effects are significantly larger for men, while remaining positive for women. The program is highly cost-effective, outperforming most job training programs and reaching levels comparable to early childhood investments.

JEL-codes: I21 I26 J13 J24 J31 O15 (search for similar items in EconPapers)
Date: 2025-10
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