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Verónica Escudero
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Verónica Escudero

Integrated approaches providing assistance to jobless individuals through the combination of income support and active labour market policies have been increasingly advocated in the policy debate, both by policy makers and international... more
Integrated approaches providing assistance to jobless individuals through the combination of income support and active labour market policies have been increasingly advocated in the policy debate, both by policy makers and international organizations. By helping people tackle immediate needs while promoting labour market reinsertion, these combined approaches are expected to improve labour market and social conditions in a sustainable manner. However, evidence on the effectiveness of this policy approach is extremely scant in emerging and developing economies. This paper studies a pivotal example of this policy trend through the evaluation of a public works programme provided alongside a cash transfer as part of a comprehensive social assistance programme that reached around 10 per cent of households in Uruguay between 2005 and 2007. We use rich administrative data of panel nature to study the effects of (i) participating in the public works programme (active component), (ii) receiving the cash transfer (income-support component), and (iii) benefiting jointly of the active and income-support programmes. Results on measures of labour market participation, employment quality, and civil society participation are non-significant across the board. Point estimates are nevertheless of the expected sign and of reasonable magnitude, suggesting that the programme came close to achieving its objective. Possible reasons of the limited effectiveness of the programme could include limited treatment intensity and lack of human capital accumulation.
This paper estimates the medium- to long-term effects of the workfare program Construyendo Perú, implemented in Peru from 2007 to 2011, to support unemployed populations in situations of poverty and extreme poverty. The paper finds that... more
This paper estimates the medium- to long-term effects of the workfare program Construyendo Perú, implemented in Peru from 2007 to 2011, to support unemployed populations in situations of poverty and extreme poverty. The paper finds that the intervention helped raise employment and reduce inactivity for certain groups of beneficiaries but at the cost of locking participants in lower quality jobs (i.e. informal and paid below the poverty line). Particularly, the program was not able to improve the perspectives of lower-educated participants in terms of job quality (although it was in terms of employment) and exacerbated the job quality perspectives of women, men, and higher-educated individuals. In terms of the mechanisms, it appears that the shift from infrastructure- to service-sector-related projects during the last two years—which were less costly, of shorter duration, and had no training component—exacerbated the effects of the program. The evaluation is carried out through a regression discontinuity approach, which exploits for the first time an interesting assignment rule of the program at the district level, namely, only districts above a certain level of poverty and development shortcomings were eligible to participate.
This paper analyses the effects of the activation and income-support interventions of the comprehensive social assistance intervention PANES, launched in Uruguay in May 2005 as an emergency plan to respond to a sharp deterioration of... more
This paper analyses the effects of the activation and income-support interventions of the comprehensive social assistance intervention PANES, launched in Uruguay in May 2005 as an emergency plan to respond to a sharp deterioration of economic and social conditions in the country since 1999. It exploits the particular setup of the programme to assess the effects of the income support Ingreso Ciudadano (IC), which covered the entire pool of PANES participants, and the active component Trabajo por Uruguay (TxU), a public works programme implemented to increase the employability and social inclusion of beneficiaries.
The paper takes a comparative perspective on the labour market impact on G20 and EU countries of the financial and economic crisis that began in 2008. It starts from the observation that the decline in employment and rise in unemployment... more
The paper takes a comparative perspective on the labour market impact on G20 and EU countries of the financial and economic crisis that began in 2008. It starts from the observation that the decline in employment and rise in unemployment in relation to output or GDP reductions varies significantly across countries. It examines the impacts from an institutional perspective taking
This report builds upon the finding of a previous research project and specifically from the conclusion that, while active labour market policies (ALMPs) are indeed able to improve workers’ labour market prospects, the success of such... more
This report builds upon the finding of a previous research project and specifically from the conclusion that, while active labour market policies (ALMPs) are indeed able to improve workers’ labour market prospects, the success of such interventions hinges on their accessibility. In several cases, a critical missing piece seemed to be adequate income support, which appeared to be a prerequisite for workers in the region to participate fully in activation programmes.

The report first provides a conceptual framework for the analysis of the effects that such policy combinations have on individual and aggregate labour market outcomes. An innovative country mapping of integrated approaches is then presented, together with the findings from a literature review and a global macroeconomic study. The analysis is complemented with evidence from impact evaluations of two programmes in Mauritius and Uruguay that have combined income support and active support in different and innovative ways. The results of the report indicate that once certain design and implementation features are taken into accounts, approaches exploiting the complementarity between ALMPs and income support are effective in improving the labour market perspectives of vulnerable workers while protecting them throughout working-life transitions.
Latin America and the Caribbean have achieved significant economic, labour market and social progress in recent decades. However, progress has begun to slow on a number of fronts that will challenge the ability of policy-makers to sustain... more
Latin America and the Caribbean have achieved significant economic, labour market and social progress in recent decades. However, progress has begun to slow on a number of fronts that will challenge the ability of policy-makers to sustain these gains.

In this context, active labour market policies (ALMPs) can play a central role by improving workers’ employability, contributing—directly or indirectly—to productive employment creation. A number of Latin American countries have embraced this policy shift.

This report, part of the Studies on Growth with Equity series, examines the effectiveness of ALMPs implemented in Latin America, notably policies carried out in Argentina, Colombia and Peru.
Research Interests:
This Report examines how employment and social policies can contribute to a more stable and equitable growth pattern in Kenya. It shows how growh in Kenya has been characterized by considerable volatility, which has adversely affected... more
This Report examines how employment and social policies can contribute to a more stable and equitable growth pattern in Kenya. It shows how growh in Kenya has been characterized by considerable volatility, which has adversely affected formal job creation and hampered improvements in living standards. Moreover, the disconnect between growth and job creation has been particularly acute for young Kenyans and other vulnerable workers, such as those in informal-sector enterprises. GDP growth in and of itself has not been enough to ensure labour market and social improvements. One alternative is to develop a national employment strategy with particular emphasis on stimulating job creation for youth, facilitating the creation of formal-sector enterprises and improving the working conditions of vulnerable workers. To that end, the report highlights a number of policy areas intended to guide policy makers in achieving growth with equity.
Research Interests:
The Spanish economy has begun to recover from both the global financial crisis of 2008 and the sovereign debt crisis of 2011 and has made some employment gains. However, the recovery remains both incomplete and fragile. On current trends,... more
The Spanish economy has begun to recover from both the global financial crisis of 2008 and the sovereign debt crisis of 2011 and has made some employment gains. However, the recovery remains both incomplete and fragile. On current trends, it would take at least a decade for the unemployment rate to return to the pre-crises situation. It is therefore crucial to strengthen the employment recovery in order to ensure sustainable economic growth and avoid a further erosion in social conditions. The report points to a number of areas where Government and social partners could take action together to solidify these recent gains and build a new path to more and better jobs.
Research Interests:
La Garantie européenne pour la jeunesse (ou Garantie jeunesse) apparaît comme une politique du marché du travail innovante. Elle a été promue dans un contexte où se faisait sentir le besoin d’une réponse urgente face aux conséquences... more
La Garantie européenne pour la jeunesse (ou Garantie jeunesse) apparaît comme une politique du marché du travail innovante. Elle a été promue dans un contexte où se faisait sentir le besoin d’une réponse urgente face aux conséquences durablement préjudiciables du chômage de longue durée. Cet article examine les données empiriques sur l’efficacité des expériences antérieures de mesures ciblées sur les jeunes, ainsi que les évaluations existantes de la Garantie jeunesse, afin d’identifier les facteurs qui s’avèrent décisifs pour sa réussite. Il détermine ensuite si ces facteurs clés de réussite sont intégrés dans les plans de mise en œuvre élaborés par les pays européens et regarde dans quelles mesures les objectifs fixés ont été atteints dans la pratique. La plupart des pays ont établi des critères d’éligibilité clairs ainsi que des cadres institutionnels appropriés et proposent un ensemble complet de mesures ; cependant, bon nombre d’entre eux ont encore des difficultés à atteindre les objectifs fixés en termes d’intervention précoce et à mettre en place des mécanismes d’exécution efficaces. Enfin, bien que les sommes effectivement investies par les États dans les programmes nationaux de Garantie jeunesse aient souvent dépassé les dépenses initialement prévues, les allocations de ressources se sont souvent avérées insuffisantes par rapport aux recommandations.
We present a systematic review and meta-analysis of impact evaluations of active labour market programmes (ALMPs) in Latin America and the Caribbean (LAC). We extract 296 impact estimates from 51 programme evaluations to analyse the... more
We present a systematic review and meta-analysis of impact evaluations of active labour market programmes (ALMPs) in Latin America and the Caribbean (LAC). We extract 296 impact estimates from 51 programme evaluations to analyse the effects of participation on employment, earnings, hours worked, and formality. Our analysis finds that the probabilities of being employed and in formal employment are the labour market indicators most likely to be positively affected by ALMPs in LAC. Moreover, ALMPs are more successful among women and youth and when they are implemented during periods of economic expansion. Training programmes increase both formal employment and earnings; training is particularly effective when it is more intensive and when explicitly targeting poor individuals.
This paper examines the effectiveness of active labour market policies (ALMPs) in improving labour market outcomes, especially of low-skilled individuals, by means of a pooled cross-country and time series database for 31 advanced... more
This paper examines the effectiveness of active labour market policies (ALMPs) in improving labour market outcomes, especially of low-skilled individuals, by means of a pooled cross-country and time series database for 31 advanced countries during the period 1985–2010. The analysis includes aspects of the delivery system to see how the performance of ALMPs is affected by different implementation characteristics. Among the notable results, the paper finds that ALMPs matter at the aggregate level, but mostly through an appropriate management and implementation. In this regard, sufficient allocation of resources to programme administration and policy continuity appear to be particularly important. Moreover, start-up incentives and measures aimed at vulnerable populations are more effective than other ALMPs in terms of reducing unemployment and increasing employment. Interestingly, the positive effects of these policies seem to be particularly beneficial for the low skilled.
This paper assesses the magnitude and nature of fiscal consolidation policies and their impact on employment. In particular, in an attempt to address fiscal imbalances in the near term, countries have been faced with the delicate... more
This paper assesses the magnitude and nature of fiscal consolidation
policies and their impact on employment. In particular, in an
attempt to address fiscal imbalances in the near term, countries have
been faced with the delicate challenge of doing so without damaging
recovery prospects and thus, counter to their original aim, worsening
further public finances. In this regard, the paper reviews recent austerity
measures adopted by governments and discusses how prolonging
fiscal consolidation measures in their current form could be counterproductive
for guaranteeing debt sustainability. Moreover, the article
shows how poorly designed fiscal cuts – directly or indirectly affecting
labour – seem to have been dampening job prospects. The paper
sheds light on how fiscal and employment goals can be achieved
together. More specifically, it finds that a fiscally-neutral change in
the expenditure and revenue composition of fiscal consolidation can
boost job creation. In this sense, the paper shows that it is imperative
to find the right policy mix and recommends countries to be mindful
of the nature and pace of consolidation.
Research Interests:
This paper examines the impact of the program Seguro de Capacitación y Empleo (SCE) implemented to provide support in skills upgrading, job seeking and job placement to eligible beneficiaries of the Argentinian conditional cash transfer... more
This paper examines the impact of the program Seguro de Capacitación y Empleo (SCE) implemented to provide support in skills upgrading, job seeking and job placement to eligible beneficiaries of the Argentinian conditional cash transfer program Plan Jefes. The SCE is an example of a growing trend observed in Latin America, where labor activation components have been increasingly included into cash transfers programs to support beneficiaries in finding more stable income opportunities. Despite this growing trend, not enough is known regarding the effectiveness of these components, especially on job quality. In this context, this paper sheds light on whether the provision of a comprehensive package of active labor market measures contributes to a successful labor market integration of cash transfers beneficiaries. Taking advantage of the panel structure of the Permanent Household Survey and exploiting the time variation in the assignment of the program as identification strategy, we apply difference-in-difference estimators to measure the impact on a number of labor market indicators. We find that the program affects positively the job quality of participants by increasing the probability of having a formal job and raising hourly wages. Moreover, the intervention is associated with a lower probability of having a low-paid job and working an excessive number of hours. These effects are, however, not homogeneous across all groups of participants. While the program is more successful among the younger beneficiaries, it does not contribute to an improvement in the labor market conditions of female beneficiaries, who in fact are the majority of SCE participants. Our results suggest that reducing dependency on monetary transfers through programs, such as the SCE, that are rich in activation components is beneficial for participants’ labor market trajectories and therefore, it constitutes a satisfactory exit strategy to more universal cash transfer programs.
Research Interests:
Competitiveness in Spain has deteriorated dramatically over the past decade driven mainly by a decrease in labour productivity. Since the onset of the current crisis, however, there were some signs of recovery in labour productivity,... more
Competitiveness in Spain has deteriorated dramatically over the past decade driven mainly by a decrease in labour productivity. Since the onset of the current crisis, however, there were some signs of recovery in labour productivity, which accompanied by well design policies could lead to a sustainable improvement in competitiveness. The purpose of this paper is to shed light on the