Workfare Programs and Their Delivery System: Effectiveness of Construyendo Perú

Abstract This paper estimates the medium- to long-term effects of the workfare program Construyendo Perú using a fuzzy regression discontinuity design and three comprehensive databases. The program helped raise employment and reduce inactivity for some groups, but these gains occurred mainly in lower-quality jobs (i.e., informal and paid below the poverty line). Participation did not improve job quality among lower-educated beneficiaries and pushed women, men, and higher-educated individuals into informal, low-earning jobs. These results suggest that the program’s shift from infrastructure- to service-sector-related projects during its last two years—which were less costly, of shorter duration, and offered no training—may explain the negative effects on participants’ job quality.