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Unemployment Duration Before and After New Deal

Author

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  • McVicar, Duncan

    (Northern Ireland Economic Research Centre)

  • Jan M Podivinsky

Abstract

A major active labour market policy - the New Deal for Young People (NDYP) - was introduced throughout the UK in 1998. We examine its effects on unemployment duration by estimating hazard functions for unemployment outflows before and after its introduction. We add value to existing evaluations in the following ways. First, we examine previously unused administrative data for Northern Ireland. Second, we examine NDYP effects at all unemployment durations. Third, we estimate separately by gender. Fourth, exits to employment, education and training and other benefits are identified separately. Since NDYP's introduction, young people are 25-50% less likely to experience year-long unemployment spells, with increased probabilities for all types of exit. NDYP is intended, however, to largely eradicate long term youth unemployment. We ask why this has not been the case in Northern Ireland.

Suggested Citation

  • McVicar, Duncan & Jan M Podivinsky, 2003. "Unemployment Duration Before and After New Deal," Royal Economic Society Annual Conference 2003 153, Royal Economic Society.
    • Handle: RePEc:ecj:ac2003:153
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    Citations

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    Cited by:

    1. Gerard J. van den Berg & Antoine Bozio & Mónica Costa Dias, 2020. "Policy discontinuity and duration outcomes," Quantitative Economics, Econometric Society, vol. 11(3), pages 871-916, July.
    2. Ralf Wilke, 2009. "Unemployment Duration in the United Kingdom: An Incomplete Data Approach," Discussion Papers 09/02, University of Nottingham, School of Economics.
    3. Bukowski, Maciej & Lewandowski, Piotr & Koloch, Grzegorz & Baranowska, Anna & Magda, Iga & Szydlowski, Arkadiusz & Bober, Magda & Bieliński, Jacek & Zawistowski, Julian & Sarzalska, Malgorzata, 2008. "Employment in Poland 2007: Security on flexible labour market," MPRA Paper 14284, University Library of Munich, Germany.
    4. Philip Ball, 2009. "Construction of a linked postcode district to regional-level dataset for Great Britain," Discussion Papers 09/09, University of Nottingham, School of Economics.
    5. Tasnim Khan & Fatima Yousaf, 2013. "Unemployment Duration of First Time Job Seekers: A Case Study of Bahawalpur," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 1(1), pages 8-19, December.

    More about this item

    Keywords

    unemployment duration; new deal; hazard functions; young people;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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