Discussion paper

DP13826 The Effects of Working while in School: Evidence from Employment Lotteries

Does working while in school smooth students' transition into the labor market? We provide evidence on this question by leveraging a one-year work-study program that randomized job offers among over 90,000 student applicants in Uruguay. Program rules forbade employers from employing participants in the same job after program completion, and less than 5 percent of participants ever worked in the same firm again. Two years after the program, participants had 8 percent higher earnings. Our results suggest that the program's focus on work-related skills was a key mechanism for earnings impacts.

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Citation

Le Barbanchon, T, D Ubfal and F Araya (2019), ‘DP13826 The Effects of Working while in School: Evidence from Employment Lotteries ‘, CEPR Discussion Paper No. 13826. CEPR Press, Paris & London. https://cepr.org/publications/dp13826