Are Active Labour Market Programmes Least Effective Where They Are Most Needed? The Case of the British New Deal for Young People

Duncan McVicar and Jan Podivinsky ()

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: One view of Active Labour Market Programmes (ALMPs) is that they are 'most needed in slack labour markets, where more unemployed workers require help finding jobs. But ALMPs might be less effective in such labour markets because there are fewer vacancies with which programme participants can match. In this paper we use data over a nine year period, across 300 local labour markets, to show that the unemployment exit and job entry impacts of participating in a mandatory ALMP for unemployed young people – the British New Deal for Young People (NDYP) – were negatively correlated with unemployment rates.

Keywords: Active Labour Market Programmes; New Deal for Young People; unemployment; evaluation; heterogeneous effects (search for similar items in EconPapers)
JEL-codes: J64 J68 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2010-09
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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