Appraising workfare

Workfare programs dim to reduce poverty by providing low-wage work to those who need it. They are often turned to in a crisis. This article offers som e simple analytical tools that can be used to rapidly appraise the cost-eff ectiveness of an existing workfare operation as a basis for deciding whethe r the program should be expanded. For pedagogic purposes, two stylized vers ions of a range of programs found in practice are analyzed: one for a middl e-income country, the other for a low-income country. The cost of a given g ain to the poor is about the same for both programs, although the component s of that cost are very different, with implications for the timing of bene fits. The author points to program design changes that could enhance the im pact on poverty.