Benchmarking the effectiveness of NDYP : A review of European and US literature on the microeconomic effects of labour market programmes for young people


The review reported here was commissioned in 2000 by the National Audit Office as part of its evaluation of the New Deal for Young People (NDYP). Its purpose was to compare the economic impact of NDYP with those of labour market programmes elsewhere, to the extent that robust and comparable evaluation results were available. To carry out this task, the authors built upon earlier reviews, including one conducted as part of an earlier evaluation of NDYP (Auspos et al., 1999). However a substantial number of studies were added to those reviewed earlier, and for reasons to be discussed shortly, it is the newer studies on which most weight will be placed in developing the comparisons with NDYP.

The outcomes of central interest relate to the economic benefits of employment in market jobs. These outcomes include employment, and wages or earnings. The evidence reviewed in this evaluation is restricted to studies applying microeconometric methods in order to identify and estimate the programme effects.

The original review for the National Audit Office (NAO) included some discussion of macroeconomic studies (see Knight and White, 2000), but it has been decided to exclude this material from the present discussion paper as they were relatively few in number and somewhat heterogeneous in method.

Research Discussion Paper 10

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