Evaluating the Employment Impact of a Mandatory Job Search Programme
59 Pages Posted: 10 Apr 2003
Date Written: February 2003
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.
Keywords: Labour market programme evaluation, job search, wage subsidy
JEL Classification: J18, J23, J38
Suggested Citation: Suggested Citation
IZA Institute of Labor Economics
P.O. Box 7240
Bonn, D-53072
Germany
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