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This paper provides the first experimental evidence on the long-term effects of
work-study programs, leveraging a randomized lottery design from a national
program in Uruguay. Participation leads to a persistent 11 percent increase
in formal labor earnings seven years after the program, driven by a 4 percent
increase in the monthly probability of being employed and a 6 percent increase
in monthly wages. Effects are significantly larger for men, while remaining
positive for women. The program is highly cost-effective, outperforming most
job training programs and reaching levels comparable to early childhood investments.
