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Journal Articles
September 2005 (Blackwell Publishing)
Article
The New Deal for Young People five years on
Type: Journal Articles
Authors: Giacomo de Giorgi
ISSN: Print: 0143-5671 Online: 1475-5890
Volume, issue, pages: Vol. 26, No. 3, pp. 371-383
JEL classification: J18, J23, J68

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The New Deal for Young People is the major welfare-to-work pro-gramme in the UK. It is a mandatory multistage policy targeted at 18- to 24-year-old unemployed people. This paper investigates the long-term effectiveness of the programme in terms of enhancing the (re-)employment probability of participating men. It exploits the eligibility rule to identify a suitable counterfactual relying upon a simple regression discontinuity design. The combination of job-search assistance, training, wage subsidies and job experience enhances employability by about 4.6 per cent and this effect lasts over different cohorts.

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