Chapter

Active Labor Market Policies and the British New Deal for the Young Unemployed in Context

Edited by John Van Reenen

in Seeking a Premier Economy

Published by University of Chicago Press

Published in print July 2004 | ISBN: 9780226092843
Published online February 2013 | e-ISBN: 9780226092904 | DOI: http://dx.doi.org/10.7208/chicago/9780226092904.003.0012
Active Labor Market Policies and the British New Deal for the Young Unemployed in Context

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On March 14, 2001, the number of people claiming unemployment benefits in the United Kingdom fell below 1 million for the first time in twenty-five years. To celebrate the event, the prime minister gave a speech on the New Deal, which involves a cluster of different policies designed to getting the jobless (especially the young unemployed) back to work. This chapter addresses two questions. Does New Labour's flagship employment policy represent a significant break from the past—and has it worked? In the 1980s and 1990s, UK governments introduced major changes in the levels and conditions for receipt of unemployment benefits. The chapter examines the effects of a large labor market program that was introduced (initially in pilot form) in January 1998, the year after the election of the new government. Because the New Deal was introduced earlier in some areas, young people in these pilot areas can be compared to young people in non-pilot areas.

Keywords: unemployment benefits; unemployment; United Kingdom; New Deal; young people; New Labour; employment policy; labor market

Chapter.  15104 words.  Illustrated.

Subjects: International Economics

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