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Estimating the impact of England's area-based intervention 'New Deal for Communities' on employment

Listed author(s):
  • Gutirrez Romero, Roxana

During the last decade the UK Government has used area-based initiatives as a key strategy to tackle deprivation, despite the criticisms that few of these initiatives have been evaluated. This paper evaluates the impact of one such area-based initiative on employment. The New Deal for Communities (NDC) program aids financially residents of 39 of the most deprived neighborhoods in the country to design and implement policies that could tackle unemployment and improve their living conditions. Using the difference-in-difference method the paper shows that the program increased the probability of jobless individuals entering employment in NDC areas compared to residents living in similar deprived areas used as control group. The program had the greatest effect on those who were in job-training, full time education and in receipt of incapacity benefit before the program began. If the NDC program increased the supply of skilled labor and encouraged inactive individuals to join the labor force, individuals in NDC areas already in employment could as a result be displaced into unemployment or less well paid jobs. However, the evidence presented here shows that the program did not cause displacement effects among those residents who were already employed in NDC areas before the program began.

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File URL: http://www.sciencedirect.com/science/article/pii/S0166-0462(08)00116-6
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Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 39 (2009)
Issue (Month): 3 (May)
Pages: 323-331

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Handle: RePEc:eee:regeco:v:39:y:2009:i:3:p:323-331
Contact details of provider: Web page: http://www.elsevier.com/locate/regec

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  7. Roxana Gutiérrez Romero & Michael Noble, 2008. "Evaluating England's 'New Deal for Communities' programme using the difference-in-difference method," Journal of Economic Geography, Oxford University Press, vol. 8(6), pages 759-778, November.
  8. David Wilkinson, 2003. "New Deal For Young People: Evaluation Of Unemployment Flows," PSI Research Discussion Series 15, Policy Studies Institute, UK.
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