Gender and Cost-Effectiveness in Public Work Programmes

Abstract

Public work programmes (PWP) are a popular part of development strategies and poverty reduction schemes and Bolivia were receivers of international aid for two workfare programmes during 2004 and 2006. To analyse how well those two programmes have functioned I decided to look at cost-effectiveness and female participation in both programmes. The main reason to look at female participation is that according to one of the main financiers of both PWP, the Inter-American Development Bank, investing in women can have great effects on economic growth and poverty reduction. I investigate the four variables (labour intensity, targeting performance, net wage gain, and indirect benefits from the assets created) determining the cost-effectiveness of PWPs. I then compare the results with Ravallion´s theoretical model for cost-effectiveness in PWPs. In my study it became clear that the PLANE programme had better cost-effectiveness than PROPAIS, with much higher labour intensity and lower cost per worker. But the indirect effects of PROPAIS seem to have been much higher, just as the objective of the programme indicates.When it comes to the female participation it has become very clear that the characteristics of the programmes affect the outcome. Both programmes was carried out in the same context and at the same time and still the results differ from 82% in PLANE to just 19% in PROPAIS.A simple targeting criterion with a fixed salary doesn’t affect the cost-effectiveness of the programme in general but can have a huge impact on female participation and thereby have effects on growth and poverty reduction.