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Breaking the low pay, no pay cycle: the effects of the UK Employment Retention and Advancement programme

Author

Listed:
  • Richard Hendra
  • James Riccio
  • Richard Dorsett
  • Philip Robins

Abstract

This paper presents the final economic results of the UK Employment Retention and Advancement (ERA) programme. ERA’s distinctive combination of post-employment advisory support and financial incentives was designed to help low-income individuals who entered work sustain employment and advance in the labour market. ERA targeted three groups. ERA produced short-term earnings gains for two lone parent target groups. However, these effects generally faded after the programme ended, largely because the control group caught up with the ERA group. For the New Deal 25 Plus target group (mostly long term unemployed men), ERA produced modest but sustained increases in employment and earnings. JEL Codes: I38, J18, C93 Copyright Hendra et al. 2015

Suggested Citation

  • Richard Hendra & James Riccio & Richard Dorsett & Philip Robins, 2015. "Breaking the low pay, no pay cycle: the effects of the UK Employment Retention and Advancement programme," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-32, December.
    • Handle: RePEc:spr:izalpo:v:4:y:2015:i:1:p:1-32:10.1186/s40173-015-0042-9
    DOI: 10.1186/s40173-015-0042-9
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    References listed on IDEAS

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    1. Philip K. Robins & Charles Michalopoulos & Kelly Foley, 2008. "Are Two Carrots Better Than One? The Effects of Adding Employment Services to Financial Incentive Programs for Welfare Recipients," ILR Review, Cornell University, ILR School, vol. 61(3), pages 410-423, April.
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    3. Richard Dorsett & Philip K. Robins, 2013. "A Multilevel Analysis of the Impacts of Services Provided by the U.K. Employment Retention and Advancement Demonstration," Evaluation Review, , vol. 37(2), pages 63-108, April.
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    7. Blank, Rebecca M. & Card, David & Robins, Philip K., 1999. "Financial Incentives for Increasing Work and Income Among Low-Income Families," Department of Economics, Working Paper Series qt2f15x7sg, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
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    Cited by:

    1. Martin, John P., 2016. "Whither Activation Policies? Reflections for the Future," IZA Policy Papers 114, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Financial incentives; Welfare-to-work; Long term unemployed; Field experiment;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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