ILO What Works Research Brief No. 15

Combating Extreme Poverty by Providing Active Support as Part of a Conditional Cash Transfer Schemes

Integrating active labour market policies (ALMPs) into poverty alleviation programmes can foster employment opportunities while protecting individuals’ incomes from the consequences of a severe recession. Recent research on Uruguay’s response to the economic crisis of 2002 demonstrates that allowing the beneficiaries of cash transfer schemes to voluntary participate in public works increases their chances of finding jobs afterwards, and at the same time counteracts any indirect negative effect that income support may have on labour market outcomes.