The Effects of Working while in School: Evidence from Employment Lotteries
Thomas Le Barbanchon
- American Economic Journal: Applied Economics (Forthcoming)
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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