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Do workfare participants recover quickly from retrenchment?

Author

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  • Ravallion, Martin
  • Galasso, Emanuela
  • Lazo, Teodoro
  • Philipp, Ernesto

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.

Suggested Citation

  • Ravallion, Martin & Galasso, Emanuela & Lazo, Teodoro & Philipp, Ernesto, 2001. "Do workfare participants recover quickly from retrenchment?," Policy Research Working Paper Series 2672, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2672
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    References listed on IDEAS

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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.
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    5. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    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.
    7. 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.
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    11. Ravallion, Martin, 2000. "Monitoring Targeting Performance When Decentralized Allocations to the Poor Are Unobserved," The World Bank Economic Review, World Bank, vol. 14(2), pages 331-345, May.
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    Cited by:

    1. del Ninno, Carlo & Dorosh, Paul A., 2002. "In-kind transfers and household food consumption," FCND briefs 134, International Food Policy Research Institute (IFPRI).
    2. 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.
    3. Özler, Berk, 2007. "Not Separate, Not Equal: Poverty and Inequality in Post-apartheid South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 55(3), pages 487-529, April.
    4. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers and Notes 29142, The World Bank.
    5. Martin Ravallion & Emanuela Galasso & Teodoro Lazo & Ernesto Philipp, 2005. "What Can Ex-Participants Reveal about a Program’s Impact?," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    6. David Coady, 2015. "Designing and Evaluating Social Safety Nets: Theory, Evidence, and Policy Conclusions," Working Papers id:7496, eSocialSciences.
    7. repec:wbk:wbpubs:13530 is not listed on IDEAS
    8. World Bank, 2009. "Argentina : Income Support Policies toward the Bicentennial," World Bank Publications - Books, The World Bank Group, number 13531.
    9. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).

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