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

78 Pages Posted: 30 Jul 2019

See all articles by Federico Araya

Federico Araya

Uruguayan Ministry of Labor and Social Security

Thomas Le Barbanchon

Bocconi University

Diego Ubfal

Africa Gender Innovation Lab, World Bank; IGIER; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: June 2019

Abstract

We provide the first estimates of the effects of working while in school that use controlled random variation in job offers. We leverage a Uruguayan program offering 9-to-12-month part-time employment in state-owned companies by lottery to enrolled students. Using social security data matched to the universe of over 120,000 applicants, we estimate a 9% increase in earnings over the four post-program years for youth completing a program job. We find large positive effects on school enrollment during the program year, consistent with the conditionality of the program and smaller effects in the post-program years. Our time-use survey indicates that students substitute leisure and household chores with work, without significant reductions in studying time. Finally, a decomposition of the earnings effect shows that accumulation of work experience can explain the majority of the increase in earnings.

Keywords: randomized lottery, student employment

JEL Classification: I21, I28, J08, J22, J24

Suggested Citation

Araya, Federico and Le Barbanchon, Thomas and Ubfal, Diego, The Effects of Working While in School: Evidence from Uruguayan Lotteries (June 2019). CEPR Discussion Paper No. DP13826, Available at SSRN: https://ssrn.com/abstract=3428347

Federico Araya (Contact Author)

Uruguayan Ministry of Labor and Social Security ( email )

Uruguay

Thomas Le Barbanchon

Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

Diego Ubfal

Africa Gender Innovation Lab, World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

IGIER ( email )

Via Roentgen 1
Milan, 20136
Italy

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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