Assisting the Transition from Workfare to Work: A Randomized Experiment

Posted: 4 Oct 2004

See all articles by Emanuela Galasso

Emanuela Galasso

World Bank - Development Research Group (DECRG)

Martin Ravallion

Georgetown University

Agustin Salvia

Republic of Argentina - Ministry of Labor

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Abstract

Argentina's Proempleo Experiment, conducted in 1998-2000, was designed to assess whether a wage subsidy and specialized training could assist the transition from workfare to regular work. Randomly sampled workfare participants in a welfare-dependent urban area were given a voucher that entitled an employer to a sizable wage subsidy; a second sample also received the option of skill training; and a third sample formed the control group. Voucher recipients, the authors find, had a higher probability of employment than did the control group, even though the rate of actual take-up of vouchers by the hiring employers was very low. The employment gains were in the informal sector and largely confined to female workers, younger workers, and more educated workers. Skill training had no statistically significant impact overall, though once the analysis corrects for selective compliance, an impact for those with sufficient prior education is found.

Keywords: Workfare, welfare, transition from workfare to work, Argentina, Proempleo Experiment

JEL Classification: I38, J20

Suggested Citation

Galasso, Emanuela and Ravallion, Martin and Salvia, Agustin, Assisting the Transition from Workfare to Work: A Randomized Experiment. Available at SSRN: https://ssrn.com/abstract=598380

Emanuela Galasso (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

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Washington, DC 20433
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Martin Ravallion

Georgetown University ( email )

Washington, DC 20057
United States

Agustin Salvia

Republic of Argentina - Ministry of Labor

Buenos Aires
Argentina

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