New Deal For Young People: Evaluation Of Unemployment Flows


The New Deal for Young People (NDYP) was introduced in Great Britain in January 1998 as one of the key parts of the government's welfare to work strategy. The aims of the programme were to help the young unemployed people into work and increase their employability. NDYP is for 18-24 year-olds who have been claiming Jobseeker's Allowance (JSA) for six months or more (including those getting NI credits only). It provides opportunities to work, get new skills and/or get work experience in the voluntary and environmental sectors of the economy.

NDYP starts with a period known as the Gateway. On the Gateway participants receive up to four months of intensive, personalised help and support, initially designed to help find an unsubsidised job. If the participant does not get a job straight away, they will be directed towards one of four New Deal Options. The Options available are subsidised work, full-time education and training, work in the voluntary sector or work with the Environment Task Force. The Options typically last for six months, after which participants enter a period known as Follow through, which provides similar support to that available under the Gateway. NDYP is a mandatory programme, there is no option to not participate and continue to claim JSA.

The aim of this paper is to derive estimates of the extent to which outcomes for individual participants in NDYP were changed by participation in the programme, by comparison with what would have happened to them without the programme. Evaluating the separate effects of the Options is not an aim of this paper. A separate evaluation study, using a different approach, was commissioned to assess the effectiveness of the Options relative to one another (see Bonjour et al., 2001).

The structure of the report is as follows. The next section discusses the methods used in the evaluation. Section Three introduces the data to be used in the analysis and provides some basic descriptive information that highlights the method of analysis. Section Four presents estimated results prior to the introduction of NDYP, this analysis is used to choose the appropriate baseline period against which NDYP is to be assessed. Section Five presents the estimated results for the impact of NDYP on the probability of being unemployed after entering the programme. Section Six considers pre-programme effects. Section Seven considers the destinations upon leaving unemployment. Section Eight concludes.

Research Discussion Paper 15

Wilkinson, D. (2003), New Deal For Young People: Evaluation Of Unemployment Flows, Research Discussion Paper 15, Policy Studies Institute

ISBN: 0853748136
Read the PDF: New Deal For Young People