Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71527
Authors: 
De Giorgi, Giacomo
Year of Publication: 
2005
Series/Report no.: 
IFS Working Papers, Institute for Fiscal Studies (IFS) 05/08
Abstract: 
The New Deal For Young People is the major welfare-to-work program in the UK. It is a mandatory multistage policy targeted at the 18-24 year old unemployed. This paper investigates the effectiveness of the program in terms of enhancing the (re)employment probability of participant males. I exploit the eligibility rule to identify a suitable counterfactual relying upon a simple regression discontinuity design. By exploiting such a discontinuity I am able to non parametrically identify (Hahn et al., 2001) a local average treatment effect (LATE). While relying upon the non parametric local linear regression method I am able to push forward such a parameter to a global dimension, implicitly adding parametric structure. No evidence of possible general equilibrium as well as substitution effects is found by a co- hort specific approach (before and after the program). The main result is that the program enhances employability by about 6-7%.
Subjects: 
Labour market policy evaluation
regression discontinuity
non parametric
JEL: 
J18
J23
J38
C14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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