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Labor Supply and Taxation$
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Richard Blundell, Andreas Peichl, and Klaus F. Zimmermann

Print publication date: 2016

Print ISBN-13: 9780198749806

Published to Oxford Scholarship Online: June 2016

DOI: 10.1093/acprof:oso/9780198749806.001.0001

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Evaluating the Employment Impact of a Mandatory Job Search Program

Evaluating the Employment Impact of a Mandatory Job Search Program

Chapter:
(p.250) 10 Evaluating the Employment Impact of a Mandatory Job Search Program
Source:
Labor Supply and Taxation
Author(s):

Richard Blundell

Monica Costa Dias

Costas Meghir

John Van Reenen

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198749806.003.0011

This chapter examines the labour market impact of the British New Deal for Young People, which was instituted to mitigate unemployment and low wages that emerged during the 1990s. Economic and social data showed that most of the unemployed and low salary earners come from families with children, the out-of-work youth, and older men. Thus, the UK Government implemented the Working Families Tax Credit (WFTC) and the New Deal, which emphasized the policy of ‘making work pay’. The chapter analyses two broad classes of policy options motivated by the ‘making work pay’ objective: active labour market programs that involve wage subsidies together with improved job matching; and earned income tax credits that supplement wages for working low-income families.

Keywords:   labour market impact, British New Deal for Young People, worklessness, low pay, UK, Working Families Tax Credit, making work pay

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