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The Effects of Working while in School: Evidence from Uruguayan Lotteries

Federico Araya, Thomas Le Barbanchon () and Diego Ubfal ()

No 13826, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We provide the first estimates of the effects of working while in school that use controlled random variation in job offers. We leverage a Uruguayan program offering 9-to-12-month part-time employment in state-owned companies by lottery to enrolled students. Using social security data matched to the universe of over 120,000 applicants, we estimate a 9% increase in earnings over the four post-program years for youth completing a program job. We find large positive effects on school enrollment during the program year, consistent with the conditionality of the program and smaller effects in the post-program years. Our time-use survey indicates that students substitute leisure and household chores with work, without significant reductions in studying time. Finally, a decomposition of the earnings effect shows that accumulation of work experience can explain the majority of the increase in earnings.

Keywords: randomized lottery; student employment (search for similar items in EconPapers)
JEL-codes: I21 I28 J08 J22 J24 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-lma and nep-ure
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