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Evaluating the Employment Impact of a Mandatory Job Search Program

Author

Listed:
  • Richard Blundell

    (University College London and Institute for Fiscal Studies)

  • Monica Costa Dias

    (Institute for Fiscal Studies)

  • Costas Meghir

    (University College London and Institute for Fiscal Studies)

  • John Van Reenen

    (London School of Economics and Center for Economic Performance)

Abstract

This paper exploits area-based piloting and age-related eligibility rules to identify treatment effects of a labor market program-the New Deal for Young People in the U.K. A central focus is on substitution/displacement effects and on equilibrium wage effects. The program includes extensive job assistance and wage subsidies to employers. We find that the impact of the program significantly raised transitions to employment by about 5 percentage points. The impact is robust to a wide variety of nonexperimental estimators. However, we present some evidence that this effect may not be as large in the longer run. (JEL: J18, J23, J38) Copyright (c) 2004 The European Economic Association.

Suggested Citation

  • Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 569-606, June.
    • Handle: RePEc:tpr:jeurec:v:2:y:2004:i:4:p:569-606
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    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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