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

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

No 11185, Policy Research Working Paper Series from The World Bank

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, observable seven years after the program. Effects are stronger for youth who participate during pivotal educational transitions and are larger for vulnerable youth and men, while remaining positive for women and non-vulnerable youth. The program is highly cost-effective, with average impacts exceeding those of job training programs and comparable to early childhood investments.

Date: 2025-08-18
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