Abstract
AbstractThe New Deal for Young People is the major welfare‐to‐work programme 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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