The Effects of Working while in School: Evidence from Uruguayan Lotteries
Thomas Le Barbanchon () and
Diego Ubfal ()
No 13826, CEPR Discussion Papers from C.E.P.R. Discussion Papers
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)
New Economics Papers: this item is included in nep-lma and nep-ure
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