Into jobs or into the classroom? The UK new deal for young people

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Description/Abstract

The New Deal for Young People (NDYP) is a major active labour market policy aimed at getting long-term unemployed young people in the UK into jobs. In this paper we use duration analysis to examine whether the policy has raised the probabilities of exit from unemployment to employment, to education/training, to other benefits and to other destinations, at different durations of unemployment. We find NDYP to have boosted exit rates to all destinations for participants, i.e. it does help some young people out of unemployment and into work. The (previously unidentified) primary effect of NDYP, however, has been to shift large numbers of young people out of unemployment and into education and training. It is not yet clear whether these young people are subsequently more ‘employable’ as a result of the intervention.