LSE CEP LSE
Centre for Economic Performance (CEP)

Welfare to Work

CEP research has been very influential in the design of UK welfare-to-work programmes, notably the New deal for Young People. We continue to research into the consequences of these policies for unemployment, employment and inactivity. Amongst our major research findings in this area are:
  • In 1996 the UK introduced its current system of unemployment insurance, the Job-Seekers Allowance. In "What Are the Long-Term Effects of UI? Evidence from the UK JSA Reform" [Full document in Adobe PDF] CEP Discussion Paper 841, December 2007, Barbara Petrongolo investigates the effect of the introduction of JSA finding that, while it did reduce the claimant count, it was much less successful in moving claimants into jobs that paid good wages.

    Contact Barbara Petrongolo, email b.petrongolo@lse.ac.uk, for more information.

  • In "The Incidence of an Earned Income Tax Credit: Evaluating the Impact on Wages in the UK" [Full document in Adobe PDF] CEP Discussion Paper 724, May 2006, Ghazala Azmat looks at the impact of the Working Families Tax Credit. Although intended to benefit low-income families, she shows that part of the gain went to their employers.

    Contact Ghazala Azmat, email ghazala.azmat@upf.edu for more information.