Research has shown that people living in poverty are more likely to experience a range of psychological barriers that might constrain economic success. These barriers may include lower aspirations and goals, a perception that their actions have limited impacts on their circumstances, time inconsistent preferences, as well as a lack of information about the potential for high-return investments. Unconditional cash transfers are an effective and increasingly popular approach to lifting households out of poverty, but households may benefit from additional support to maximize the impact of receiving cash.

Researchers partnered with the government of Uruguay to evaluate the impact of a national youth employment program. The program increased participants’ earnings and school enrollment during and up to two years after the program, suggesting that work-study programs may ease students’ school-to-work transition.