How well has the New Deal for Young People worked in the UK regions?

Description/Abstract

The UK New Deal for Young People (NDYP) is a mandatory active labour market programme (ALMP) aimed at helping unemployed young people into jobs. This paper examines how the programme affected hazard rates for unemployment exits across the UK regions in its first few years. The regional focus is motivated by the belief that differences between regional labour markets, between claimants, and differences in implementation may have led to differences in programme outcomes. The paper shows that NDYP increased outflows from unemployment in all regions but that its impact was larger in some regions than in others. The paper also shows differential NDYP impacts across the regions on destination-specific hazard rates from unemployment to employment, to education/training, to inactivity and to ‘other’. Possible explanations for these results are then discussed.