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Are active labour market programs least effective where they are most needed? The case of the British New Deal for Young People

Are active labour market programs least effective where they are most needed? The case of the British New Deal for Young People
Are active labour market programs least effective where they are most needed? The case of the British New Deal for Young People
There is much debate, but surprisingly little evidence, on the question of whether Active Labour Market Programs (ALMPs) have differential effects in labour markets characterised by different levels of labour demand. On the one hand we might expect ALMPs to have greater impacts in tight labour markets because more and perhaps better job vacancies exist.

On the other hand, ALMPs might have larger impacts in slack labour markets because the unemployed have more favourable characteristics or because the added value of such programs is higher. In this paper we explore whether a mandatory ALMP for unemployed young people introduced in 1998 – the British New Deal for Young People (NDYP) – has had heterogeneous impacts across local labour markets, controlling for differences in program implementation and in the characteristics of the unemployed young people themselves. We find mostly robust evidence that the program impact on a variety of outcome measures is decreasing with the local unemployment rate.
McVicar, Duncan
2f910ef3-d22b-4f00-b95b-cc6312b653f6
Podivinsky, Jan M.
68b5a6e8-9d09-4a3e-97b2-4a9e4f1efbb9
McVicar, Duncan
2f910ef3-d22b-4f00-b95b-cc6312b653f6
Podivinsky, Jan M.
68b5a6e8-9d09-4a3e-97b2-4a9e4f1efbb9

McVicar, Duncan and Podivinsky, Jan M. (2010) Are active labour market programs least effective where they are most needed? The case of the British New Deal for Young People. EALE/SOLE 3rd International Conference, London, United Kingdom. 17 - 19 Jun 2010. (In Press)

Record type: Conference or Workshop Item (Paper)

Abstract

There is much debate, but surprisingly little evidence, on the question of whether Active Labour Market Programs (ALMPs) have differential effects in labour markets characterised by different levels of labour demand. On the one hand we might expect ALMPs to have greater impacts in tight labour markets because more and perhaps better job vacancies exist.

On the other hand, ALMPs might have larger impacts in slack labour markets because the unemployed have more favourable characteristics or because the added value of such programs is higher. In this paper we explore whether a mandatory ALMP for unemployed young people introduced in 1998 – the British New Deal for Young People (NDYP) – has had heterogeneous impacts across local labour markets, controlling for differences in program implementation and in the characteristics of the unemployed young people themselves. We find mostly robust evidence that the program impact on a variety of outcome measures is decreasing with the local unemployment rate.

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Accepted/In Press date: June 2010
Venue - Dates: EALE/SOLE 3rd International Conference, London, United Kingdom, 2010-06-17 - 2010-06-19

Identifiers

Local EPrints ID: 155529
URI: http://eprints.soton.ac.uk/id/eprint/155529
PURE UUID: 02ddedce-d765-42b3-bbf7-129d989b7859
ORCID for Jan M. Podivinsky: ORCID iD orcid.org/0000-0002-4921-1189

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Date deposited: 28 May 2010 10:24
Last modified: 14 Mar 2024 02:32

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Author: Duncan McVicar

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