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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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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 23 October 2021

Evaluating the Employment Impact of a Mandatory Job Search Program

Evaluating the Employment Impact of a Mandatory Job Search Program

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

Richard Blundell

Monica Costa Dias

Costas Meghir

John Van Reenen

Oxford University Press

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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