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Welfare-to-work and the New Deal

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  • Richard Layard

Abstract

Welfare-to-work is on trial in many countries. In Britain it has become the government’s most important policy for lowering unemployment and expanding labour supply. But can it work? And what lessons does Britain’s experience provide for other countries? This paper argues that whilst the Welfare-to-Work approach has the power to transform the lives of millions—by making them self-sustaining rather than dependent—it requires extreme sensitivity. The help must be of very high quality and the spirit of the policy must be visibly in the clients’ interest. The author concludes that the New Deal has been an extraordinary success from that angle, with very high levels of client satisfaction. It is a good example for other countries to follow. But each future step must be as sensitive as the last.

Suggested Citation

  • Richard Layard, 2000. "Welfare-to-work and the New Deal," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 1(2), pages 29-39, April.
    • Handle: RePEc:wej:wldecn:13
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    Cited by:

    1. John Van Reenen, 2004. "Active Labor Market Policies and the British New Deal for the Young Unemployed in Context," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 461-496, National Bureau of Economic Research, Inc.
    2. Bagaria, Nitika & Petrongolo, Barbara & Van Reenen, John, 2015. "Can Helping the Sick Hurt the Able? Incentives, Information and Disruption in a Disability-Related Welfare Reform," IZA Discussion Papers 9089, Institute of Labor Economics (IZA).
    3. Van Reenen, John, 2005. "Welfare to work: the evidence on Labour’s new deal policies," LSE Research Online Documents on Economics 4672, London School of Economics and Political Science, LSE Library.
    4. Ronald W. McQuaid & Colin Lindsay, 2005. "The Concept of Employability," Urban Studies, Urban Studies Journal Limited, vol. 42(2), pages 197-219, February.
    5. Élie Chosson, 2013. "Allocataires du RSA, entre retour au travail et stratégies alternatives. De l'émancipation face à la domination de la valeur," Post-Print halshs-00904287, HAL.
    6. Felix Koenig & Barbara Petrongolo & John Van Reenen & Nitika Bagaria, 2019. "Can Helping the Sick Hurt the Able? Incentives, Information and Disruption in a Welfare Reform," The Economic Journal, Royal Economic Society, vol. 129(624), pages 3189-3218.
    7. Mike Campbell, 2000. "Reconnecting the Long Term Unemployed to Labour Market Opportunity: The Case for a 'Local Active Labour Market Policy'," Regional Studies, Taylor & Francis Journals, vol. 34(7), pages 655-668, October.
    8. repec:aia:aiaswp:wp50 is not listed on IDEAS
    9. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 569-606, June.
    10. Karl Aiginger, 2003. "The Relative Importance of Labour Market Reforms to Economic Growth," WIFO Working Papers 208, WIFO.
    11. Karl Aiginger, 2005. "Labour market reforms and economic growth – the European experience in the 1990s," Journal of Economic Studies, Emerald Group Publishing, vol. 32(6), pages 540-573, October.
    12. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2001. "Evaluating the employment impact of a mandatory job search assistance program," IFS Working Papers W01/20, Institute for Fiscal Studies.
    13. Karl Aiginger, 2003. "Insufficient investment into future growth: the forgotten cause of low growth in Germany," Economics working papers 2003-14, Department of Economics, Johannes Kepler University Linz, Austria.
    14. Karl Aiginger, 2004. "Labour Market Reforms and Economic Growth. The European Experience in the Nineties," WIFO Working Papers 232, WIFO.
    15. de Koning, J. & Layard, R. & Nickell, S. & Westergaard-Nielsen, N., 2004. "Policies for full employment," LSE Research Online Documents on Economics 47444, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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