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Does welfare-to-work policy increase employment?: Evidence from the UK New Deal for Young People

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  • Rebecca Riley
  • Dr Garry Young

Abstract

Welfare-to-work programmes were implemented in several OECD countries during the 1990s. With these programmes, entitlement to unemployment related benefits is conditional on taking up help in finding and actively preparing for work. This paper examines empirically the employment effects of the New Deal for Young People, a welfare-to-work programme for long-term unemployed young people introduced in the UK in 1998. It finds that the programme has reduced measured unemployment among the target group partly by shifting them into non-work activities but also by raising employment.

Suggested Citation

  • Rebecca Riley & Dr Garry Young, 2001. "Does welfare-to-work policy increase employment?: Evidence from the UK New Deal for Young People," National Institute of Economic and Social Research (NIESR) Discussion Papers 183, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:183
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    Cited by:

    1. James Banks & Richard Disney & Alan Duncan & John Van Reenen, 2005. "The Internationalisation of Public Welfare Policy," Economic Journal, Royal Economic Society, vol. 115(502), pages 62-81, March.
    2. Duncan McVicar & Jan M. Podivinsky, 2010. "Are Active Labour Market Programmes Least Effective Where They Are Most Needed? The Case of the British New Deal for Young People," Melbourne Institute Working Paper Series wp2010n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Alexander Murray, 2010. "The State of Knowledge on the Role and Impact of Labour Market Information: A Survey of the International Evidence," CSLS Research Reports 2010-05, Centre for the Study of Living Standards.
    4. John Van Reenen, 2004. "Active Labor Market Policies and the British New Deal for the Young Unemployed in Context," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 461-496, National Bureau of Economic Research, Inc.
    5. Marco Caliendo & Ricarda Schmidl, 2016. "Youth unemployment and active labor market policies in Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-30, December.
    6. Philippe Aghion & Terra Allas & Timothy Besley & John Browne & Francesco Caselli & Richard Davies & Richard Lambert & Rachel Lomax & Stephen Machin & Gianmarco I. P. Ottaviano & Christopher A. Pissari, 2017. "UK growth: a new chapter," CEP Reports 28b, Centre for Economic Performance, LSE.
    7. Michael White, 2004. "Effective Job Search Practice in the UK's Mandatory Welfare-to-Work Programme for Youth," PSI Research Discussion Series 17, Policy Studies Institute, UK.
    8. Colin Lindsay & Garry Sturgeon, 2003. "Local Responses to Longterm Unemployment: Delivering Access to Employment in Edinburgh," Local Economy, London South Bank University, vol. 18(2), pages 159-173, May.
    9. Martin Robson, 2006. "Sectoral shifts, employment specialization and the efficiency of matching: An analysis using UK regional data," Regional Studies, Taylor & Francis Journals, vol. 40(7), pages 743-754.
    10. Rebecca Riley & Dr Garry Young, 2001. "The macroeconomic impact of the New Deal for Young People," National Institute of Economic and Social Research (NIESR) Discussion Papers 184, National Institute of Economic and Social Research.
    11. Duncan McVicar & Jan M. Podivinsky, 2009. "How Well Has The New Deal For Young People Worked In The Uk Regions?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(2), pages 167-195, May.

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