In Simple Words
Imagine a free soup kitchen that serves basic soup, but requires everyone in line to clean tables for an hour to get a bowl. People with good jobs or money will not stand in line and clean tables just for basic soup, so only people who truly need the meal will show up.
People in Sierra Leone’s public works trial
- Study comparison group
- Comparison group
- Public works program
- Income rose by 29%
Sierra Leone: community infrastructure work paid USD 1.80 per day. The income result does not prove that higher-income workers were excluded.
See source →Research question
Traditional social safety nets often struggle with administrative costs and screening errors when attempting to identify the poorest individuals. Without effective screening, cash assistance risks capture by non-poor households who do not urgently require aid.
Participants
Multi-country analysis across 13 randomized evaluations in low- and middle-income nations, including Sierra Leone, Côte d'Ivoire, and the Democratic Republic of the Congo.
Study Design
Systematic review of randomized controlled trials evaluating workfare targeting efficiency, labor constraints, and transfer rates.
Results
Workfare programs paying at or below minimum wage ($1.80 per day in Sierra Leone) successfully targeted impoverished individuals, boosting participant incomes by 29 percent during active participation without attracting higher-wage workers.
Takeaway
Set public works wage rates at or slightly below prevailing market floor rates while requiring physical labor to enforce automatic self-selection by low-income individuals.