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Evaluating the Employment Impact of a Mandatory Job Search Programme

Author

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  • Blundell, Richard
  • Meghir, Costas
  • Van Reenen, John
  • Costa Dias, Monica

Abstract

This Paper exploits area-based piloting and age-related eligibility rules to identify treatment effects of a labour market program ? the New Deal for Young People in the UK. A central focus is on substitution/displacement effects and on equilibrium wage effects. The programme includes extensive job assistance and wage subsidies to employers. We find that the programme significantly raised transitions to employment by about five percentage points (about 20% over the pre-program base). The impact is robust to a wide variety of non-experimental estimators. We present some evidence suggesting that this effect may not, however, be as large in the longer run.

Suggested Citation

  • Blundell, Richard & Meghir, Costas & Van Reenen, John & Costa Dias, Monica, 2003. "Evaluating the Employment Impact of a Mandatory Job Search Programme," CEPR Discussion Papers 3786, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:3786
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    References listed on IDEAS

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    1. Richard Blundell & Alan Duncan & Costas Meghir, 1998. "Estimating Labor Supply Responses Using Tax Reforms," Econometrica, Econometric Society, vol. 66(4), pages 827-862, July.
    2. 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.
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    5. Rebecca M. Blank & David Card & Philip K. Robins, 1999. "Financial Incentives for Increasing Work and Income Among Low-Income Families," JCPR Working Papers 69, Northwestern University/University of Chicago Joint Center for Poverty Research.
    6. Peter Dolton & Gerald Makepeace & John Treble, 1994. "Public- and Private-Sector Training of Young People in Britain," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 261-282, National Bureau of Economic Research, Inc.
    7. Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-660, November.
    8. Dickens, Richard & Machin, Stephen & Manning, Alan, 1999. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 1-22, January.
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    More about this item

    Keywords

    Labour market programme evalution; Job search; Wage subsidy;
    All these keywords.

    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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