Employment Effects of a Social and Labor Inclusion Program

Abstract

In this paper, we examine the effects of a social and labour inclusion program called Uruguay Trabaja (UT) on various labour market outcomes and subjective well-being in Uruguay. Using
administrative data and a custom survey, we estimate the program’s causal effects by exploiting the random assignment of the beneficiaries. Our findings indicate that the UT program increases by 40% the probability of a beneficiary having a formal job between two and three years after the end of their participation in the program, and it improves satisfaction with different dimensions of employment, but does not affect the probability of being employed overall. Additionally, we provide evidence suggesting that these effects persist over time, up to three years after the intervention ended. This study highlights the importance of implementing comprehensive programs for vulnerable populations and of considering long-term effects when evaluating their effectiveness.

Keywords: employment effects, public policy, inclusion program

JEL Classification: C9, H53, I38, J08