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Appraising workfare programs

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  • Ravallion, Martin

Abstract

Workfare programs aim to reduce poverty by providing low-wage work for those who need it. They are often turned to in a crisis when there is too little time for a rigorous evaluation. They are also relatively complex programs, and difficult to evaluate. The author offers some simple analytical tools for rapidly appraising workfare programs. For pedagogic purposes, the two programs are stylized versions of a range of programs found in actual practice. One is for a middle-income country (in which unemployment has risen sharply in the wake of macroeconomic stabilization and reform), the other for a low-income country (hit by severe drought). The sole objective of both programs is to reduce poverty. By rough calculations, the cost of a $1 gain to the poor is $2.50 in both cases though the same gain in current earnings would cost 50 to 100 percent more. Benefits to the poor could be greatly enhanced by design changes -- for example, switching to more labor-intensive production methods for subprojects (in the middle-income country); enhancing the indirect benefits within poor communities from the assets created; or striving for greater cost recovery from the nonpoor.

Suggested Citation

  • Ravallion, Martin, 1998. "Appraising workfare programs," Policy Research Working Paper Series 1955, The World Bank.
    • Handle: RePEc:wbk:wbrwps:1955
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    References listed on IDEAS

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    1. Datt, Gaurav & Ravallion, Martin, 1994. "Transfer Benefits from Public-Works Employment: Evidence for Rural India," Economic Journal, Royal Economic Society, vol. 104(427), pages 1346-1369, November.
    2. Martin Ravallion & Gaurav Datt, 1995. "Is Targeting Through a Work Requirement Efficient? Some Evidence for Rural India," Monash Economics Working Papers archive-41, Monash University, Department of Economics.
    3. Besley, Timothy & Coate, Stephen, 1992. "Workfare versus Welfare Incentive Arguments for Work Requirements in Poverty-Alleviation Programs," American Economic Review, American Economic Association, vol. 82(1), pages 249-261, March.
    4. Ravallion, Martin, 1991. "Reaching the Rural Poor through Public Employment: Arguments, Evidence, and Lessons from South Asia," The World Bank Research Observer, World Bank, vol. 6(2), pages 153-175, July.
    5. Besley, T., 1988. "Workfare Vs. Welfare: Incentive Arguments For Work Requirements In Poverty Alleviation Programs," Papers 142, Princeton, Woodrow Wilson School - Public and International Affairs.
    6. K. Subbarao, 1997. "Public Works as an Anti-Poverty Program: An Overview of Cross-Country Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 678-683.
    7. Radhakrishna, R. & Subbarao, K., 1997. "India's Public Distribution System. A National and International Perspective," World Bank - Discussion Papers 380, World Bank.
    8. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657, Elsevier.
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    Cited by:

    1. Maloney, William F., 2001. "Evaluating emergency programs," Policy Research Working Paper Series 2728, The World Bank.
    2. Gustavo Márquez, 2000. "Labor Markets and Income Support: What Did We Learn from the Crises?," Research Department Publications 4219, Inter-American Development Bank, Research Department.
    3. Sanjiv Kumar & S. Madheswaran & B. P. Vani, 2020. "Ad Hoc Rationing, Capacity Bias, Information Asymmetry and Elite Capture of MGNREGA in Karnataka: Policy Perspectives on Poverty and Regional Balance," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(3), pages 741-763, September.
    4. Gustavo Márquez, 2000. "Mercados laborales y apoyo del ingreso: ¿Qué hemos aprendido de las crisis?," Research Department Publications 4220, Inter-American Development Bank, Research Department.
    5. World Bank, 2002. "Colombia : Social Safety Net Assessment," World Bank Publications - Reports 15361, The World Bank Group.
    6. Iyanatul ISLAM, 2005. "Circumventing macroeconomic conservatism: A policy framework for growth, employment and poverty reduction," International Labour Review, International Labour Organization, vol. 144(1), pages 55-84, March.
    7. Roberto Perotti, 2000. "Gasto público en protección social en Colombia: análisis y propuestas," Working Papers Series. Documentos de Trabajo 2756, Fedesarrollo.
    8. Roberto Perotti, 2000. "Public spending on social protection in Colombia : analysis and proposals," Working Papers Series. Documentos de Trabajo 3407, Fedesarrollo.
    9. Iyanatul Islam, 2001. "Beyond Labour Market Flexibility: Issues and Options for Post-Crisis Indonesia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 6(3), pages 305-334.

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