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

Author

Listed:
  • Mery Ferrando
  • Noemi Katzkowicz
  • Thomas Le Barbanchon
  • Diego Ubfal

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.

Suggested Citation

  • Mery Ferrando & Noemi Katzkowicz & Thomas Le Barbanchon & Diego Ubfal, 2025. "The Lasting Effects of Working while in School: A Long-Term Follow-Up," RFBerlin Discussion Paper Series 25102, Rockwool Foundation Berlin (RF Berlin).
    • Handle: RePEc:crm:wpaper:25102
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    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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