Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Côte d'Ivoire

Abstract

We study contemporaneous and post-program impacts of a public works program which provides urban youth seven months of employment at the formal minimum wage with complementary training in entrepreneurship or job search. During the program, the employment rate only increases slightly, but we find a shift toward wage jobs, higher earnings and savings, as well as positive changes in work habits, behaviors, and well-being. After the program, we find no lasting impact on employment or behaviors, with only limited gains in earnings stemming from independent activities. Using machine learning to analyze heterogeneity, we show that alternative targeting approaches can substantially improve welfare. (JEL C45, G51, H53, I38, J13, J64, O15)