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Evaluating the employment impact of a mandatory job search assistance program

  • Richard Blundell

    ()

    (Institute for Fiscal Studies and IFS and UCL)

  • Monica Costa Dias

    ()

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Costas Meghir

    ()

    (Institute for Fiscal Studies and Yale University)

  • John Van Reenen

    (Institute for Fiscal Studies)

This paper is an evaluation of the British labor market program the "New Deal for the Young Unemployed" using administrative panel data on individuals between 1982 and 1999. This mandatory program involves extensive job assistance followed by various other options, including wage subsidies. We exploit the differential timing of the introduction of the program across regions as well as age-related eligibility rules to identify the program effect. Estimates of the employment effects of the mandatory job search assistance part of the program are presented using a variety of estimation techniques exploring combined "difference in differences" and matching procedures. Our key finding is that unemployed men are now 20% more likely to gain jobs than prior to the New Deal.

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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W01/20.

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Length: 57 pp
Date of creation: Aug 2001
Date of revision:
Handle: RePEc:ifs:ifsewp:01/20
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  1. Richard Layard, 2000. "Welfare-to-work and the New Deal," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 136(III), pages 277-287, September.
  2. Orley Ashenfelter & David Card, 1984. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," NBER Working Papers 1489, National Bureau of Economic Research, Inc.
  3. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
  4. Richard Blundell & Alan Duncan & Costas Meghir, 1998. "Estimating Labor Supply Responses Using Tax Reforms," Econometrica, Econometric Society, vol. 66(4), pages 827-862, July.
  5. Gary Burtless, 1995. "The Case for Randomized Field Trials in Economic and Policy Research," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 63-84, Spring.
  6. Heckman, James J & Smith, Jeffrey, 1997. "Making the Most Out of Programme Evaluations and Social Experiments: Accounting for Heterogeneity in Programme Impacts," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 487-535, October.
  7. 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.
  8. Laurie J. Bassi, 1983. "The Effect of CETA on the Postprogram Earnings of Participants," Journal of Human Resources, University of Wisconsin Press, vol. 18(4), pages 539-556.
  9. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
  10. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
  11. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  12. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  13. Bassi, Laurie J, 1984. "Estimating the Effect of Training Programs with Non-Random Selection," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 36-43, February.
  14. Jerry A. Hausman & David A. Wise, 1985. "Social Experimentation," NBER Books, National Bureau of Economic Research, Inc, number haus85-1, 07.
  15. 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.
  16. Lawrence F. Katz, 1996. "Wage Subsidies for the Disadvantaged," NBER Working Papers 5679, National Bureau of Economic Research, Inc.
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