Welfare impacts of public works in fragile and conflict affected economies: The Londö public works in the Central African Republic

Abstract

Workfare programs are a widely used but costly means through which many developing countries provide income generating opportunities for the poor and mitigate adverse impacts from shocks, including conflict and violence. We evaluate the Londö public works program in the Central African Republic, where more than 70 percent of the population is estimated to live below the poverty line and armed groups control large parts of the territory. Our evaluation design leverages the random assignment of eligibility to participate in the program through publicly held lotteries. Comparing those who are eligible with those who are not 2 to 18 months after the intervention using cross-sectional data from more than 6,000 respondents, we find that the program led to a lasting increase of around 10 percent in post-intervention monthly earnings and a small increase on number of days worked. The response to the program was highly gendered. Female beneficiaries diversified income sources and engaged more often in trading whereas men intensified agricultural production. We also document an increase in certain asset categories that mirror the gendered impacts on economic activity, as well as higher levels of happiness and satisfaction among beneficiaries. We do not find a strong link between program participation and variables that are proxies for social cohesion.