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Welfare Reform on the Web (June 2006): Social security - UK - new deal

The New Deal for Young People: effect on the labour market status of young men

R. Dorsett

Labour Economics, vol.13, 2006, p.405-422

The New Deal for Young People was introduced in Britain in 1998 as a key element of the Labour government’s welfare-to-work strategy. Participants begin with a period of intensive job search known as the Gateway and then enter one of four options (subsidised employment, full-time education or training, work with the voluntary sector or work with an environmental task force) In this paper, the relative effects of these options on unemployment exit are evaluated. Results show that subsidised employment is the most effective option for enabling young men to exit welfare. Remaining on the gateway appears more effective than entering any of the other three options

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