Abstract
This paper uses propensity score matching techniques to evaluate the impact of new deal options on the chances of exiting unemployment for a cohort of entrants to the new deal for young people in Scotland between September 1998 and February 1999. The paper uses information from the new deal evaluation database and from a two‐stage survey based on a random sample of the cohort. It finds that the employment option was the most effective of the new deal options, both in terms of increasing the likelihood of exit from unemployment by February 2001 and increasing the amount of time spent off by JSA from February 2000 to February 2001. Remaining on the Gateway was the next most effective route for clients to take with regard to reducing the amount of time spent on JSA and increasing the likelihood of JSA exit.
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