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

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  • Gutirrez Romero, Roxana

Abstract

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.

Suggested Citation

  • Gutirrez Romero, Roxana, 2009. "Estimating the impact of England's area-based intervention 'New Deal for Communities' on employment," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 323-331, May.
  • Handle: RePEc:eee:regeco:v:39:y:2009:i:3:p:323-331
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, Elsevier.
    2. Roxana Gutiérrez-Romero, 2012. "Determinants of Spanish Firms' Life Cycle and Job Creation: A Pseudo-Panel Approach," Working Papers wpdea1209, Department of Applied Economics at Universitat Autonoma of Barcelona.
    3. Givord, Pauline & Rathelot, Roland & Sillard, Patrick, 2013. "Place-based tax exemptions and displacement effects: An evaluation of the Zones Franches Urbaines program," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 151-163.
    4. Accetturo, Antonio & de Blasio, Guido, 2012. "Policies for local development: An evaluation of Italy's “Patti Territoriali”," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 15-26.
    5. repec:eee:jhouse:v:37:y:2017:i:c:p:67-83 is not listed on IDEAS
    6. Deng, Yongheng & McMillen, Daniel P. & Sing, Tien Foo, 2012. "Private residential price indices in Singapore: A matching approach," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 485-494.
    7. Hurst, Needham B. & West, Sarah E., 2014. "Public transit and urban redevelopment: The effect of light rail transit on land use in Minneapolis, Minnesota," Regional Science and Urban Economics, Elsevier, vol. 46(C), pages 57-72.
    8. repec:eee:regeco:v:67:y:2017:i:c:p:25-41 is not listed on IDEAS
    9. Deng, Yongheng & McMillen, Daniel P. & Sing, Tien Foo, 2014. "Matching indices for thinly-traded commercial real estate in Singapore," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 86-98.

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