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The Effect of Making a Voluntary Labour Market Programme Compulsory: Evidence from a UK Experiment
Author(s) -
Dorsett Richard,
Smeaton Deborah,
Speckesser Stefan
Publication year - 2013
Publication title -
fiscal studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.63
H-Index - 40
eISSN - 1475-5890
pISSN - 0143-5671
DOI - 10.1111/j.1475-5890.2013.12016.x
Subject(s) - receipt , turnover , labour economics , random assignment , economics , demographic economics , active labour market policies , unemployment , economic growth , medicine , accounting , management , pathology
This paper investigates the effects on employment and benefit receipt of making a voluntary active labour market programme compulsory. This policy change, which targeted long‐term unemployed people over the age of 50, was piloted in a number of areas within the UK and evaluated by individual random assignment of the requirement to participate. The results show that mandating participation resulted in a sustained increase in employment and a corresponding reduction in benefit receipt. The results were driven at least in part by a deterrent effect.