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Evaluating the Employment Impact of a Mandatory Job Search Programme

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  • Blundell, Richard William
  • Costa Dias, Monica
  • Meghir, Costas
  • Van Reenen, John

Abstract

This Paper exploits area-based piloting and age-related eligibility rules to identify treatment effects of a labour market program – the New Deal for Young People in the UK. A central focus is on substitution/displacement effects and on equilibrium wage effects. The programme includes extensive job assistance and wage subsidies to employers. We find that the programme significantly raised transitions to employment by about five percentage points (about 20% over the pre-program base). The impact is robust to a wide variety of non-experimental estimators. We present some evidence suggesting that this effect may not, however, be as large in the longer run.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3786.

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Date of creation: Feb 2003
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Handle: RePEc:cpr:ceprdp:3786

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Related research

Keywords: job search; labour market programme evalution; wage subsidy;

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References

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  1. Richard Dickens & Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," CEP Discussion Papers dp0183, Centre for Economic Performance, LSE.
  2. Rebecca M. Blank & David Card & Philip K. Robins, 1999. "Financial Incentives for Increasing Work and Income Among Low-Income Families," JCPR Working Papers 69, Northwestern University/University of Chicago Joint Center for Poverty Research.
  3. Gary Burtless, 1995. "The Case for Randomized Field Trials in Economic and Policy Research," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 63-84, Spring.
  4. Richard Layard, 2001. "Welfare to Work and the New Deal," CEP Occasional Papers 15, Centre for Economic Performance, LSE.
  5. Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-60, November.
  6. Lawrence F. Katz, 1996. "Wage Subsidies for the Disadvantaged," NBER Working Papers 5679, National Bureau of Economic Research, Inc.
  7. Richard Blundell & Alan Duncan & Costas Meghir, 1995. "Estimating labour supply responses using tax reforms," IFS Working Papers W95/07, Institute for Fiscal Studies.
  8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  9. Peter Dolton & Gerald Makepeace & John Treble, 1994. "Public- and Private-Sector Training of Young People in Britain," NBER Chapters, in: Training and the Private Sector, pages 261-282 National Bureau of Economic Research, Inc.
  10. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
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