Select Committee on Education and Employment Appendices to the Minutes of Evidence


APPENDIX 8 (continued)

DATA APPENDIX

  The UoD data used in this paper is taken from the government's DfEE website http://www.dfee.gov.uk/ndimprove/ Core performance tables relating to the New Deal. The data refers to all 144 Units of Delivery in the England, Wales and Scotland. Our information begins with the sample period before the introduction of New Deal ie. Q4 in 1997 is t=0. The time period is then indexed from the beginning of the Pathfinder operation in January 1998, i.e. our t=1. The second quarter of the data relates to the cohort who began the New Deal between April and June 1998 at time t=2. Each subsequent quarter's data relates to the cohort who began New Deal in succeeding quarters, so for example the t=3 cohort began New Deal between July and September 1998. The available Core Performance data goes up to period t=5 which relates to the period April to June 1999.

  The website provides details of the numbers in each of the New Deal options as well as the performance of these New Deal recipients in the sense of the number who leave to unsubsidised jobs, the number who leave to subsidised jobs, and the number who do not return to JSA within 13 weeks. In addition the website provides useful covariate information which constitute the characteristics of the UoD locality and the New Deal population in that area. There are details of : the proportion who are men, the proportion disabled, the proportion attaining NVQ level 2 and the total unit cost by UoD. In addition extra information is provided include whether or not the DfEE regards the area as a "tight" labour market or not.

  The data from the DfEE website was supplemented from NOMIS to provide unemployment numbers broken down by age and duration for each UoD. This enables us to calculate: exactly how many other people are unemployed in the UoD apart from those on New Deal; the proportion of unemployed who are between the ages of 18-24, and, the proportion of the unemployed who are long term (over 6 months duration). Unfortunately the vacancy level is not directly available for each UoD. Hence the best match was sought from existing NOMIS vacancy data by county, employment office, ward and other available geographies. This resulted in a close match for 114 out of the 144 UoD locations. Many of the missing locations are rural areas in Scotland or Wales with spare populations and very low numbers of New Deal. Full details are provide in the Data Appendix of this paper.

Table A1

VARIABLE DEFINITIONS

 Mean
(Standard Deviation)
Variable definition
Number of Unsubsidised Jobs177.09 (104.96) Number of New Deal participants moving into Unsubsidised Jobs. From Core Performance Table A.
Number of Subsidised Jobs27.38 (27.31) Number of New Deal Participants moving into subsidised Jobs. From Core Performance Table B.
Number not returning to JSA within 13 weeks 136.46 (104.96)Number of New Deal participants not returning to JSA from jobs for 13 weeks. From Core Performance Table D.
New Deal Cohort431.67 (533.12) The number of people entering the New Deal cohort in quarter t.
Unit Cost2,751.79 (837.28) The per head unit cost of a New Deal person in the UoD for the intake. From Core Performance Table C.
Percentage Men72.41 (5.71) The proportion of New Deal cohort who are men. Reported in Core Performance Table E.
Percentage Ethnic Minority87.19 (17.80) The proportion of New Deal cohort who are not from any ethnic minority. Reported in Core Performance Table E.
Percentage Disabled14.40 (5.35) The proportion of New Deal cohort declaring a disability. Reported in Core Performance Table E.
Percentage Employment Option7.69 (4.88) The proportion of New Deal cohort who have been in the Employment Option. Calculated from Core Performance Tables A and I.
Percentage FTET Option16.65 (6.52) The proportion of New Deal cohort who have been in the Full Time Education and Training Option. Calculated from Core Performance Tables A and I.
Percentage Voluntary Option14.53 (10.44) The proportion of New Deal cohort who have been in the Voluntary Option. Calculated from Core Performance Tables A and I.
Tight Labour Market0.49 (0.50) Dummy variable which takes the value 1 if the UoD labour market is "tight" in terms of low unemployment. This is clusters A, C or E in the Performance Tables.
London0.97Dummy variable taking the value 1 for all UoD in the Greater London area and 0 otherwise. Note that London is one TTWA and therefore has the same values on various labour market variables like earnings.
Pathfinder Area0.98 Dummy variable taking the value 1 if the UoD was a Pathfinder area and 0 otherwise. The pathfinder areas are: Black Country, Cornwall, Cumbria, Eastbourne and Hastings, Harlow, Lambeth, Newcastle and Gateshead and South Tyneside, Rotherham, Southern Derbyshire, Swansea, Tayside, West Wales, and Wirral.
Unemployment UoD8,660.87 (6,230.57) The total number of unemployed by UoD by quarter. This data is taken directly from NOMIS data for each quarter of the panel.
Vacancies UoD6,256.90 (9,718) The total number of vacancies by UoD by quarter. This data is derived from NOMIS data for each quarter of the panel. Note that NOMIS does not as yet provide vacancy data by UoD. Hence this date had to be constructed for the nearest match on UoD constructed from other county, city, ward and LEA geographical data. (See Vacancy data note below.)
Percentage Long Term Unemployed40.76 (7.55) The proportion of those unemployed who have been unemployed for more than six months in their present spell. This data is derived from NOMIS data for each quarter of the panel.
Percentage Young Unemployed25.05 (3.97) The proportion of those unemployed who are aged 18-24. This data is derived from NOMIS data for each quarter of the panel.
Average Earnings375.53 (59.72) Average Gross weekly full time earnings, April 1998 (pounds) in nearest match to UoD. From Regional Trends 1999 Tables 14.5, 15.5 and 16.5. This variable is not time varying.

VACANCY DATA BY UOD

  Note that NOMIS does not as yet provide vacancy data by UoD. Hence this data had to be constructed for the nearest match on UoD constructed from other county, city, ward and LEA geographical data. In the present regressions the UoD there are 30 UoD areas for which no exact match is found in NOMIS data. They are: Channel, Ceredigon, Chatham, Croydon and Bromley, East Lancashire, Harlow, Havering Barking and Dagenham, Hereford and Worcester, Knowsley, Moray Strathsprey, North Devon, North Essex, North Lancashire, North West Wales, Powys, Ross and Cromarty, Sefton, Solihull, South Essex, Stockport, Sutton Merton and Esher, Kingston, Epsom, West Lancashire, West Lothian, West Norfolk.

Peter Dolton and Yvonne Balfour
University of Newcastle upon Tyne, Department of Economics

January 2000


 
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