Do Workfare Participants Recover Quickly from Retrenchment?
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...
| Main Authors: | , , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/09/1570717/workfare-participants-recover-quickly-retrenchment http://hdl.handle.net/10986/19556 |
| Summary: | 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. |
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