Public Works as a Productive Safety Net in a Post-Conflict Setting

This paper examines the short-term impacts of a labor-intensive public works program on household welfare and economic prospects. Using a community-level randomized control trial approach, the paper finds that the public works program targeted at youth in Sierra Leone successfully provided temporary employment to youth characterized by low educational attainment. Cash income among program participants increased by nearly three times relative to the control counterparts, and treatment households experienced a 29 percent rise in monthly income. There is also evidence of significant re-optimization of household labor allocation and expenditure in response to program participation. First, there is an overall crowding-in of labor force participation by household members beyond program participation. Second, the extra income is spent partly to improve the quality of life and partly to secure future earnings. The treated households raised spending on food, medicines, and assets. They also expanded utilization of health services. Meanwhile, the consumption of temptation goods was greater, albeit by a small amount, and the rate of absenteeism among students was higher. To secure future earnings, the treated households set up new businesses: they were nearly four times more likely than the control households to set up new household enterprises. They also boosted their participation in informal savings groups and their investments in their homes and existing businesses. These results demonstrate that public works interventions have considerable potential as productive safety nets in post-conflict settings such as Sierra Leone. They can provide immediate income support, but also open avenues for investment in the productive capacity of poor households.

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Bibliographic Details
Main Authors: Rosas, Nina, Sabarwal, Shwetlena
Format: Working Paper biblioteca
Language:English
en_US
Published: World Bank, Washington, DC 2016-02
Subjects:HOUSEHOLD INCOMES, COMMUNITIES, SOCIAL COHESION, DURABLE GOODS, SAFETY NET, CHILD LABOR, SOCIAL SAFETY NETS, INCOME, HOUSEHOLD CONSUMPTION, FUTURE EARNINGS, ATTENDANCE RATES, SERVICES, FINANCIAL CRISES, SAVINGS GROUPS, FOOD POLICY, WELFARE, GOVERNMENT CAPACITY, HEALTH, IN‐KIND PAYMENTS, PROJECTS, PROJECT, PRODUCTIVE ASSETS, IN‐KIND TRANSFERS, INCOME SUPPORT, CASH TRANSFER, SELF‐ TARGETING, INTERHOUSEHOLD TRANSFERS, WAGE RATE, CONFLICT, BENEFICIARIES, HEALTH FACILITIES, SOCIAL ACTION, INTERNATIONAL FOOD POLICY, SAFETY NETS, POVERTY REDUCTION, HOUSEHOLD INCOME, PUBLIC‐WORKS, COVARIATE SHOCKS, ANTIPOVERTY PROGRAMS, LABOR MARKET, HEALTH FACILITY, SAVINGS, BENEFICIARY, INTERVENTION, ADMINISTRATIVE COSTS, SOCIAL PROTECTION, EMPLOYMENT GUARANTEE, CASH INTERVENTIONS, TRANSFERS, MARKETS, ELIGIBILITY CRITERIA, HOUSEHOLD SURVEYS, SCHOOL ENROLLMENTS, HOUSEHOLD WELFARE, CASH TRANSFERS, ANTIPOVERTY INSTRUMENTS, DESIGN, TRANSFER PROGRAM, HOUSEHOLD LEVEL, FOOD SECURITY, LEAN SEASON, LABOR MARKET PROGRAMS, COST‐ EFFECTIVENESS, SCHOOL ATTENDANCE, PARTICIPATION, DESCRIPTION, VILLAGE‐LEVEL, COST‐EFFECTIVENESS, INCOME SHOCKS, GENDER, CASH PAYMENTS, HOMES, PUBLIC WORKS, HOUSEHOLD‐LEVEL, HYGIENE, OCCUPATION, TRANSITION COUNTRIES, URBAN AREAS, HOUSEHOLD, POVERTY RELIEF, FOOD EXPENDITURE, YOUTH, CONDITIONAL CASH, INSTITUTIONAL CAPACITY, LABOR MARKETS, TRANSFER AMOUNT, MARKET, INFRASTRUCTURE PROJECTS, IDIOSYNCRATIC SHOCKS, FOOD INSECURITY, TARGETING, ECONOMIC DEVELOPMENT, WORKS PROGRAM, RURAL AREAS, TEMPORARY JOBS, WORK PROGRAM, NATIONAL COVERAGE, HOUSEHOLDS, ACCESS TO SERVICES, ROAD REHABILITATION, POVERTY, NUMBER OF CHILDREN, HEALTH SERVICES, SELF‐TARGETING, FACILITIES, MARKET WAGE, INTERVENTIONS, POOR, COMMUNITY, TEMPORARY EMPLOYMENT, SAFETY, FEMALE, COMMUNITY INFRASTRUCTURE,
Online Access:http://documents.worldbank.org/curated/en/2016/02/25977554/public-works-productive-safety-net-post-conflict-setting-evidence-randomized-evaluation-sierra-leone
https://hdl.handle.net/10986/23916
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Summary:This paper examines the short-term impacts of a labor-intensive public works program on household welfare and economic prospects. Using a community-level randomized control trial approach, the paper finds that the public works program targeted at youth in Sierra Leone successfully provided temporary employment to youth characterized by low educational attainment. Cash income among program participants increased by nearly three times relative to the control counterparts, and treatment households experienced a 29 percent rise in monthly income. There is also evidence of significant re-optimization of household labor allocation and expenditure in response to program participation. First, there is an overall crowding-in of labor force participation by household members beyond program participation. Second, the extra income is spent partly to improve the quality of life and partly to secure future earnings. The treated households raised spending on food, medicines, and assets. They also expanded utilization of health services. Meanwhile, the consumption of temptation goods was greater, albeit by a small amount, and the rate of absenteeism among students was higher. To secure future earnings, the treated households set up new businesses: they were nearly four times more likely than the control households to set up new household enterprises. They also boosted their participation in informal savings groups and their investments in their homes and existing businesses. These results demonstrate that public works interventions have considerable potential as productive safety nets in post-conflict settings such as Sierra Leone. They can provide immediate income support, but also open avenues for investment in the productive capacity of poor households.