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The macroeconomic impact of the New Deal for Young People

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Rebecca Riley ()
Garry Young

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Abstract

The New Deal for Young People (NDYP) is one of the main components of the UK government’s Welfare-to-Work strategy aimed at raising employment and reducing benefit dependency. It combines elements of an active labour market programme with a stricter benefit regime. This paper evaluates its impact on the wider economy, emphasising the importance of the programme’s effect on wage pressure, which is identified separately from the impact of the National Minimum Wage introduced around the same time. While the impact of the NDYP on the wider economy appears modest it is associated with an economic gain.

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Paper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number 184.

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Date of creation: Aug 2001
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Handle: RePEc:nsr:niesrd:184

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  1. Mark E Schweitzer, . "Ready, willing, and able? Measuring labour availability in the UK," Bank of England working papers 186, Bank of England. [Downloadable!]
  2. Mark Schweitzer, 2003. "Ready, willing, and able? measuring labour availability in the UK," Working Paper 0303, Federal Reserve Bank of Cleveland. [Downloadable!]
  3. Podivinsky, P & McVicar, Duncan, . "Unemployment Duration Before and After New deal," Working Papers NIERC. 74, Economic Research Institute of Northern Ireland. [Downloadable!]
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  4. Andrew Brigden & Jonathan Thomas, . "A matching model of non-employment and wage pressure," Bank of England working papers 208, Bank of England. [Downloadable!]
  5. McVicar, Duncan & Podivinsky, P, 2003. "Into Jobs or Into the Classroom? The UK New Deal for Young People," Working Papers NIERC. 80, Economic Research Institute of Northern Ireland. [Downloadable!]
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