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Do workfare participants recover quickly from retrenchment?

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Author Info
Ravallion, Martin
Galasso, Emanuela
Lazo, Teodoro
Philipp, Ernesto

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Abstract

What happens to participants in a workfare program--a program that imposes work requirements on welfare recipients--when that program is cut? The authors compare the incomes of workfare participants in Argentina to those of nonparticipants and past participants after a severe contraction in aggregate outlays on the program. The authors find evidence of partial income replacement, such that those who left the program were able to make up one quarter of the gross workfare wage within six months. This rises to half in 12 months. The estimates are unbiased in the presence of time-invariant errors from mismatching in the selection of the comparison group. Fully removing selection bias would probably yield even lower income replacement. Test results based on a second follow-up survey that valid inferences can be drawn about program impacts from the authors'measures of income replacement.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2672.

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Date of creation: 30 Sep 2001
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Handle: RePEc:wbk:wbrwps:2672

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Related research
Keywords: Health Economics&Finance; Payment Systems&Infrastructure; BD-Lcg Activities For Bd -- 2031288; Poverty Monitoring&Analysis; Poverty Impact Evaluation; Poverty Monitoring&Analysis; TF054599-PHRD-KYRGYZ REPUBLIC: WATER MANAGEMENT IMPROVEMENT PROJECT; Health Economics&Finance; Civic Participation and Corporate Governance; BD-Lcg Activities For Bd -- 2031288;

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Human Capital and Productivity Project Working Papers 20035, University of Western Ontario, CIBC Human Capital and Productivity Project. [Downloadable!]
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  2. Jalan, Jyotsna & Ravallion, Martin, 1999. "Income gains to the poor from workfare - estimates for Argentina's TRABAJAR Program," Policy Research Working Paper Series 2149, The World Bank. [Downloadable!]
  3. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-41, June. [Downloadable!] (restricted)
  5. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February. [Downloadable!] (restricted)
  6. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
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  7. Jalan, Jyotsna & Ravallion, Martin, 1998. "Are there dynamic gains from a poor-area development program?," Journal of Public Economics, Elsevier, vol. 67(1), pages 65-85, January. [Downloadable!] (restricted)
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  8. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 605-54, October. [Downloadable!] (restricted)
  9. Ravallion, Martin, 2000. "Monitoring Targeting Performance When Decentralized Allocations to the Poor Are Unobserved," World Bank Economic Review, Oxford University Press, vol. 14(2), pages 331-45, May. [Downloadable!]
  10. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. del Ninno, Carlo & Dorosh, Paul A., 2002. "In-kind transfers and household food consumption," FCND discussion papers 134, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  2. Johannes G. Hoogeveen & Berk Özler, 2005. "Not Separate, Not Equal: Poverty and Inequality in Post-Apartheid South Africa," William Davidson Institute Working Papers Series wp739, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  3. Tan, Hong & Lopez Acevedo, Gladys, 2005. "Evaluating training programs for small and medium enterprises : lessons from Mexico," Policy Research Working Paper Series 3760, The World Bank. [Downloadable!]
  4. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI). [Downloadable!]
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