Estimating the impact of England's area-based intervention 'New Deal for Communities' on employment
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.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Lechner, 2002. "Program Heterogeneity And Propensity Score Matching: An Application To The Evaluation Of Active Labor Market Policies," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 205-220, May.
- Frölich, Markus & Heshmati, Almas & Lechner, Michael, 2000.
"A Microeconometric Evaluation of Rehabilitation of Long-term Sickness in Sweden,"
SSE/EFI Working Paper Series in Economics and Finance
373, Stockholm School of Economics, revised 03 Apr 2000.
- Markus Frölich & Almas Heshmati & Michael Lechner, 2004. "A microeconometric evaluation of rehabilitation of long-term sickness in Sweden," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 375-396.
- Jeffrey Smith & Petra Todd, 2003.
"Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?,"
University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers
20035, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
- A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
- James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
- O'Keefe, Suzanne, 2004. "Job creation in California's enterprise zones: a comparison using a propensity score matching model," Journal of Urban Economics, Elsevier, vol. 55(1), pages 131-150, January.
- Rajeev H. Dehejia & Sadek Wahba, 1998.
"Propensity Score Matching Methods for Non-experimental Causal Studies,"
NBER Working Papers
6829, National Bureau of Economic Research, Inc.
- Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
- 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.
- David Wilkinson, 2003. "New Deal For Young People: Evaluation Of Unemployment Flows," PSI Research Discussion Series 15, Policy Studies Institute, UK.
- Barbara Sianesi, 2004. "An Evaluation of the Swedish System of Active Labor Market Programs in the 1990s," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 133-155, February.
- Daniel P. McMillen & John F. McDonald, 2002. "Land Values In A Newly Zoned City," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 62-72, February.
- Gillian R Smith, 1999. "Area-based Initiatives: The rationale and options for area targeting," CASE Papers 025, Centre for Analysis of Social Exclusion, LSE.
- Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:39:y:2009:i:3:p:323-331. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.