Ex ante assessment of the potential impact of labor-intensive public works in Liberia
Apart from fiscal measures, another initiative taken by the government of Liberia to respond to the economic crisis consisted in the launch of a cash for work temporary employment program. This part of the study consists of three chapters devoted to the analysis of the program. First, in this chapter which was written before the program was actually implemented, we provide an ex ante analysis of the potential impact of such a program, relying on simulation techniques rather than on impact evaluation. The approach is very simple. We assess who may be potentially interested in articipating in the public works program by identifying working individuals without pay, as well as for every level of proposed wage in the public works, those individuals who work but now earn less than the public works wage, since all these individuals may indeed be interested in participating in the program to increase their earnings. We also consider as potential beneficiaries the unemployed whose reservation wage is below the proposed public works wage. Next, we randomly select among the pool of potential beneficiaries of the program a number of participants. Finally, we estimate for the assumed participants to the program two key parameters which affect the potential impact of the program on the poor: the targeting performance of the program, and the substitution effect of the program, whereby only part of the wages paid to beneficiaries generate additional income, because at least some of the beneficiaries would probably have done other work if they had not participated in the program. The results suggest that such a cash for work program could be well targeted, but that this is by no means assured ex ante.
|Date of creation:||Apr 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Subbarao, Kalanidhi, 2003. "Systemic shocks and social protection : role and effectiveness of public works programs," Social Protection Discussion Papers 25606, The World Bank.
- Adato, Michelle & Haddad, Lawrence James, 2001.
"Targeting poverty through community-based public works programs,"
FCND discussion papers
121, International Food Policy Research Institute (IFPRI).
- Adato, Michelle & Haddad, Lawrence James, 2001. "Targeting poverty through community-based public works programs," FCND briefs 121, International Food Policy Research Institute (IFPRI).
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:38554. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.