Downloads
wp9912.pdf
PDF | 1.16 MB
This paper examines alternative approaches to wage subsidy programmes. It does this in the context of a recent active labour market reform for the young unemployed in Britain. This ӎew DealԠreform and the characteristics of the target group are examined in detail. We discuss theoretical considerations, survey the existing empirical evidence and propose two strategies for evaluation. The first suggests an expost Ѵrend adjusted diĥrence in diĥrence' estimator. The second, relates to a model based ex-ante evaluation. We present the conditions for each to provide a reliable evaluation and Ŵ some of the crucial parameters using data from the British Labour Force Survey. We stress that the success of this type of labour market programmes hinge on dynamic aspects of the youth labour market, in particular the pay-off to experience and training.
Authors
CPP Co-Director
Richard is Co-Director of the Centre for the Microeconomic Analysis of Public Policy (CPP) and Senior Research Fellow at IFS.
John Van Reenen
Bell, Bell
Working Paper details
- DOI
- 10.1920/wp.ifs.1999.9912
- Publisher
- IFS
Suggested citation
B, Bell and R, Blundell and J, Van Reenen. (1999). Getting the unemployed back to work: the role of targeted wage subsidies. london: IFS. Available at: https://ifs.org.uk/publications/getting-unemployed-back-work-role-targeted-wage-subsidies (accessed: 4 May 2024).
More from IFS
Understand this issue
If you can’t see it, you can’t be it: role models influence female junior doctors’ choice of medical specialty
24 April 2024
The £600 billion problem awaiting the next government
25 April 2024
A mess has been made of Child Benefit, and the clear-up operation may not be easy
29 March 2024
Policy analysis
Recent trends in and the outlook for health-related benefits
19 April 2024
4.2 million working-age people now claiming health-related benefits, could rise by 30% by the end of the decade
19 April 2024
Recent trends in public sector pay
26 March 2024
Academic research
Labour market inequality and the changing life cycle profile of male and female wages
15 April 2024
Interpreting cohort profiles of lifecycle earnings volatility
15 April 2024
There and back again: women’s marginal commuting costs
2 April 2024