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The Effects of Working While in School: Evidence from Uruguayan Lotteries

Author

Listed:
  • Le Barbanchon, Thomas

    (Bocconi University)

  • Ubfal, Diego

    (World Bank)

  • Araya, Federico

    (Uruguayan Ministry of Labor and Social Security)

Abstract

Shall we encourage students to work while in school? We provide evidence by leveraging a one-year work-study program that randomizes job offers among students in Uruguay. Using social security data matched to over 120,000 applicants, we estimate an increase of 9% in earnings and of 2 percentage points in enrollment over the four post-program years for treated youth. Survey data indicate that enrolled participants reduce study time, but this does not translate into lower grades. Students mainly substitute leisure and household chores with work. The earnings effect is related to the work experience and the transferability of skills acquired in program jobs.

Suggested Citation

  • Le Barbanchon, Thomas & Ubfal, Diego & Araya, Federico, 2020. "The Effects of Working While in School: Evidence from Uruguayan Lotteries," IZA Discussion Papers 13929, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13929
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    More about this item

    Keywords

    student employment; randomized lottery;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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