Work-Study Programs Improve Young Women's Long-TermLabor Market Outcomes August 2026 KEY MESSAGES In Latin America and the Caribbean (LCR), the school-to-work transition is particularly challenging foryoung women, who are more likely to be out of both school and work and, when employed, to hold lower-quality, lower-paying jobs.New experimental evidence from Uruguay shows that a national work-study program generates sustainedearnings gains for both men and women up to seven years after program completion.However, long-term earnings gains are substantially larger for men (around 17 percent) than for women(around 8 percent). This gap in program effects is not statistically significant at two years and onlyemerges over the longer run, revealing that work-study programs alone are not sufficient to close existinggender gaps.The gender gap in program effects is not driven by differential effects on employment or hours worked,which are similar across genders. Rather, men experience larger gains in formal wages. The evidence rulesoutdifferential effects on sectoral sorting as an explanation:the gap is concentrated withinmanufacturing, a male-dominated sector where the program increases entry rates similarly for men andwomen. Yet men capture significantly larger wage gains, pointing to within-sector dynamics, such ascareer progression, as a key driver.Well-designed work-study programs are an effective, replicable solution to improve youth labor marketoutcomes in LCR and similar contexts. But closing persistent gender gaps may require complementarypolicies targeting career guidance, care services, and equal pay enforcement in the post-program period.Public Disclosure AuthorizedPublic Disclosure Authorized INTRODUCTION The transition from school to work is a critical period that shapes long-term labor market outcomes.InLatin America and the Caribbean (LCR), this transition remains particularly challenging, with nearly one in fiveyoung people classified as NEET (not in education, employment, or training) (ILO, 2025). Youth unemploymentrates are substantially higher than those of adults, reflecting persistent barriers to stable employment. Young women face even greater challenges than men.They are more likely to be out of both school andwork and, when employed, tend to hold lower-quality jobs characterized by lower wages, higher informality,and less stability (ILO, 2024; Berniell, Fernández and Krutikova, 2025). Early work experience can play an important role in shaping future employment trajectories.However,combining work and study involves trade-offs: while work may enhance labor market prospects, it may alsoreduce time available for education. Despite their policy relevance, there is limited causal evidence on the long-term effects of work-studyprograms(McKenzie, 2017; Card, Kluve and Weber, 2018; Carranza and McKenzie, 2024), particularly ongender gaps. This brief draws on new experimental evidence from Ferrando et al. (forthcoming) on the long-termimpacts of a national work-study program in Uruguay,including additional evidence on genderdifferences in program effects. Earlier evidence from the same program (Le Barbanchon, Ubfal and Araya,2023; Ubfal, 2022) found positive short-term impacts, with no significant gender differences in earnings twoyears after completion. The new findings reveal that a gender gap emerges and widens over the longer run, adynamic that is only visible with extended follow-up. PROGRAM AND STUDY DESIGN A recent study by Ferrando et al. (forthcoming) examines the long-term impact of the Yo Estudio yTrabajo (YET) program in Uruguay, a national initiative that provides youth aged 16 to 20 with theirfirst formal work experience.Participants are offered part-time jobs in state-owned companies for up toone year, with working hours designed to be compatible with schooling. Eligibility requires participants toremain enrolled in an educational institution throughout the program. Positions are typically administrative oroperationalsupport roles,offering formal contracts,relatively high wages for youth,and exposure tostructured work environments. The program is designed to simultaneously provide income, build skills, andstrengthen incentives to remain in school. Jobs are assigned through a lottery system, ensuring a transparent allocation process and enablingrigorous impact evaluation.Ferrando et al. (forthcoming) study the long-term effects of this program usingadministrative data matched to more than 90,000 applicants from the first three editions of the program. Theanalysis relies on social security records that track monthly formal earnings for up to seven years afterparticipation, combined with detailed application data on demographics and education. The study exploits therandomized lottery that determines program offers, comparing applicants drawn in the lottery (participants)with those not drawn (controls), to identify the causal effects of the program. RESULTS Participation in the