American Economic Journal Applied Economics · 2022 · 13 citations · 29 references
Social SciencesEconomicsEmployment PolicyLabor EconomicsLabor Market AnalysisBehavioral Labor EconomicsEmploymentLabor Market TrendsPersonnel EconomicsWork IncentivesWorkforce DemographicsConditional Job OffersJob AccessProgram Completion RatesProgram Eligibility RulesStudent Transition To EmploymentWork-study TradeoffsYouth Labour Market ParticipationYouth Transition To Work
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. (JEL I21, I26, J13, J24, J31, O15)
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