Breaking the low-pay, no-pay cycle: Final evidence from the UK Employment Retention and Advancement (ERA) demonstration

Hendra, R., Riccio, J.A., Dorsett, R., Greenberg, D., Knight, G., Phillips, J., Robins, P.K., Vegeris, S., Walter, J., Hill, A., Ray, K. and Smith, J. 2011. Breaking the low-pay, no-pay cycle: Final evidence from the UK Employment Retention and Advancement (ERA) demonstration. Sheffield Department for Work and Pensions.

TitleBreaking the low-pay, no-pay cycle: Final evidence from the UK Employment Retention and Advancement (ERA) demonstration
AuthorsHendra, R., Riccio, J.A., Dorsett, R., Greenberg, D., Knight, G., Phillips, J., Robins, P.K., Vegeris, S., Walter, J., Hill, A., Ray, K. and Smith, J.
Abstract

This report presents the final results on the implementation, impacts, costs, and economic benefits of the UK Employment Retention and Advancement (ERA) programme. ERA’s distinctive combination of post-employment advisory support and financial incentives was designed to help low-income individuals who entered work sustain employment and advance in the labour market. Launched in 2003 in selected Jobcentre Plus offices, ERA targeted three groups: (1) unemployed lone parents receiving Income Support and volunteering for the New Deal for Lone Parents welfare-to-work programme, (2) lone parents working part time and receiving Working Tax Credit, and (3) long-term unemployed people aged 25 or older receiving Jobseeker’s Allowance who were required to participate in the New Deal 25 Plus welfare-to-work programme. The effectiveness of the programme was evaluated using a random assignment research design.

The evaluation found that ERA produced short-term earnings gains for the two lone parent target groups. The early gains resulted from increases in the proportion of participants who worked full time (at least 30 hours per week). However, these effects generally faded after the programme ended, largely because the control group caught up with the ERA group.

More impressive were the results for the long-term unemployed participants (mostly men) in the New Deal 25 Plus target group. For them, ERA produced modest but sustained increases in employment and substantial and sustained increases in earnings. These positive effects emerged after the first year and were still evident at the end of a five-year follow-up period. The earnings gains were accompanied by lasting reductions in benefits receipt. ERA proved cost-effective for this group from the perspectives of the participants themselves, the Government budget, and society as a whole.

Year2011
PublisherDepartment for Work and Pensions
FileHendra_et_al_2011.pdf
Publication dates
Published2011
Place of publicationSheffield
SeriesDWP Research Report
ISBN9781908523013
Web address (URL)http://research.dwp.gov.uk/asd/asd5/rports2011-2012/rrep765.pdf
Journal citation765

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Evaluation of the Childcare Taster Pilot and Extended Schools Childcare programmes: qualitative research into initial implementation
Barnard, H. and Knight, G. 2005. Evaluation of the Childcare Taster Pilot and Extended Schools Childcare programmes: qualitative research into initial implementation. London, UK Policy Studies Institute.

Evaluation of the Childcare Taster Pilot and Extended Schools Childcare pilot programmes: qualitative research into initial implementation
Barnard, H. and Knight, G. 2005. Evaluation of the Childcare Taster Pilot and Extended Schools Childcare pilot programmes: qualitative research into initial implementation. London, UK Policy Studies Institute.

Work, life and time in the new economy: an introduction
Perrons, D., Fagan, C., McDowell, L., Ray, K. and Ward, K. 2005. Work, life and time in the new economy: an introduction. Time & Society. 14 (1), pp. 51-64.

Women's paid work and moral economies of care
McDowell, L., Ray, K., Perrons, D., Fagan, C. and Ward, K. 2005. Women's paid work and moral economies of care. Social & Cultural Geography. 6 (2), pp. 219-235.

New Deal for Young People: Relative effectiveness of the options in reducing male unemployment
Dorsett, R. 2004. New Deal for Young People: Relative effectiveness of the options in reducing male unemployment. London, UK Policy Studies Institute.

The rejuvenation of tourism in Barbados 1993-2003: reflection on the Butler model
Phillips, J. and Potter, R.B. 2004. The rejuvenation of tourism in Barbados 1993-2003: reflection on the Butler model. Geography. 89 (3), pp. 240-247.

Independent living in later life
Parry, J., Vegeris, S., Hudson, M., Barnes, H. and Taylor, R.F. 2004. Independent living in later life. Leeds, UK Corporate Document Services.

Designing a demonstration project: an employment, retention and advancement demonstration for Great Britain. 2nd edition
Morris, S., Greenberg, D., Riccio, J.A., Mittra, B., Green, H., Lissenburgh, S. and Blundell, R. 2004. Designing a demonstration project: an employment, retention and advancement demonstration for Great Britain. 2nd edition. London Cabinet Office.

The British lone parent cohort and their children 1991 to 2001
Marsh, A. and Vegeris, S. 2004. The British lone parent cohort and their children 1991 to 2001. Leeds, UK Corporate Document Services.

Employment and child poverty
Marsh, A. and Vegeris, S. 2004. Employment and child poverty. in: Dornan, P. (ed.) Ending child poverty by 2020: the first five years London, UK Child Poverty Action Group.

Evaluation of lone parent work focused interviews: final findings from administrative data analysis
Knight, G. and Lissenburgh, S. 2004. Evaluation of lone parent work focused interviews: final findings from administrative data analysis. Department for Work and Pensions.

Families and Children Strategic Analysis Programme (FACSAP): Low-moderate income couples and the labour market
Dorsett, R. and Kasparova, D. 2004. Families and Children Strategic Analysis Programme (FACSAP): Low-moderate income couples and the labour market. Leeds, UK Corporate Document Services.

Using matched substitutes to adjust for nonignorable nonresponse: an empirical investigation using labour market data
Dorsett, R. 2004. Using matched substitutes to adjust for nonignorable nonresponse: an empirical investigation using labour market data. London, UK Policy Studies Institute.

The new deal for young people: effect of the options on the labour market status of young men
Dorsett, R. 2004. The new deal for young people: effect of the options on the labour market status of young men. London, UK University of Westminster.

Joint claims for JSA age range extension: quantitative evaluation: survey report
Bewley, H. and Dorsett, R. 2004. Joint claims for JSA age range extension: quantitative evaluation: survey report. Sheffield, UK Department for Work and Pensions.

Work-based learning for adults: an evaluation of labour market effects
Anderson, T., Dorsett, R., Hales, J., Lissenburgh, S., Pires, C. and Smeaton, D. 2004. Work-based learning for adults: an evaluation of labour market effects. Sheffield, UK Department for Work and Pensions.

Trends in social capital: membership of associations in Great Britain, 1991-98
Warde, A., Tampubolon, G., Longhurst, B., Ray, K., Savage, M. and Tomlinson, M. 2003. Trends in social capital: membership of associations in Great Britain, 1991-98. British Journal of Political Science. 33 (3), pp. 515-525.

Families and children 2001: living standards and the children
Vegeris, S. and Perry, J. 2003. Families and children 2001: living standards and the children. Leeds, UK Corporate Document Services.

Social dynamics of 'foreign born' and 'young' returning nationals to the caribbean: a review of the literature
Phillips, J. and Potter, R.B. 2003. Social dynamics of 'foreign born' and 'young' returning nationals to the caribbean: a review of the literature. University of Reading.

Evaluation of lone parent adviser meetings: interim findings from administrative data analysis
Knight, G. and White, M. 2003. Evaluation of lone parent adviser meetings: interim findings from administrative data analysis. Department for Work and Pensions.

Labour market policy and macro-economic job search impacts
Knight, G. 2003. Labour market policy and macro-economic job search impacts. London, UK Policy Studies Institute.

Families and children 2001: work and childcare
Kasparova, D., Marsh, A., Vegeris, S. and Perry, J. 2003. Families and children 2001: work and childcare. Leeds, UK Corporate Document Services.

Large scale social experimentation in Britain: what can and cannot be learnt from the Employment Retention and Advancement demonstration
Greenberg, D. and Morris, S. 2003. Large scale social experimentation in Britain: what can and cannot be learnt from the Employment Retention and Advancement demonstration. London Cabinet Office.

Employment group seminar: refreshment samples, matching and attrition bias
Dorsett, R. 2003. Employment group seminar: refreshment samples, matching and attrition bias. Policy Studies Institute.

Low/moderate-income families in Britain: changes in living standards 1999-2000
Vegeris, S. and McKay, S. 2002. Low/moderate-income families in Britain: changes in living standards 1999-2000. Leeds, UK Corporate Document Services.

Social dynamics of 'foreign-born' and 'young' returning nationals to the Caribbean: outline of a research project
Phillips, J. and Potter, R.B. 2002. Social dynamics of 'foreign-born' and 'young' returning nationals to the Caribbean: outline of a research project. London, UK Royal Holloway, University of London.

The beach boy of Barbados: the post-colonial entrepreneur
Phillips, J. 2002. The beach boy of Barbados: the post-colonial entrepreneur. in: Thorbek, S. and Pattanaik, B. (ed.) Transnational prostitution: changing patterns in a global context London, UK Zed Books. pp. 42-56

Benchmarking the effectiveness of New Deal for Young People
Knight, G. and White, M. 2002. Benchmarking the effectiveness of New Deal for Young People. London, UK Report commissioned by National Audit Office for submission report HC 639 "New Deal for Young People" Session 2001-2002, 28 February 2002.

The use of propensity score matching in the evaluation of active labour market policies
Bryson, A., Dorsett, R. and Purdon, S. 2002. The use of propensity score matching in the evaluation of active labour market policies. London, UK Department for Work and Pensions.

They get knocked down: do they get up again? Displaced workers in Britain and Australia
Borland, J., Gregg, P., Knight, G. and Wadsworth, J. 2002. They get knocked down: do they get up again? Displaced workers in Britain and Australia. in: Kuhn, P.J. (ed.) Losing work, moving on: international perspectives on worker displacement Kalamazoo, USA W.E. Upjohn Institute for Employment Research. pp. 301-374

Evaluation of New Deal for Young People in Scotland: phase 2
Bonjour, D., Knight, G. and Lissenburgh, S. 2002. Evaluation of New Deal for Young People in Scotland: phase 2. Edinburgh Scottish Executive Central Research Unit.

Enterprise and Lifelong Learning research findings no. 4: evaluation of New Deal for Young People in Scotland: phase 2
Bonjour, D., Knight, G. and Lissenburgh, S. 2002. Enterprise and Lifelong Learning research findings no. 4: evaluation of New Deal for Young People in Scotland: phase 2. Edinburgh Scottish Executive Central Research Unit.

Joint claims for JSA: quantitative evaluation of labour market effects
Bonjour, D., Dorsett, R., Knight, G. and Lissenburgh, S. 2002. Joint claims for JSA: quantitative evaluation of labour market effects. Sheffield, UK Department for Work and Pensions.

New deal for partners: characteristics and labour market transitions of eligible couples
Bonjour, D. and Dorsett, R. 2002. New deal for partners: characteristics and labour market transitions of eligible couples. Sheffield, UK Department for Work and Pensions.

Benchmarking the effectiveness of NDYP: a review of European and US literature on the microeconomic effects of labour market programmes for young people
White, M. and Knight, G. 2002. Benchmarking the effectiveness of NDYP: a review of European and US literature on the microeconomic effects of labour market programmes for young people. London, UK Policy Studies Institute.

Macro-economic evaluation of new deal for young people: job search impacts using LFS data
Knight, G. and White, M. 2001. Macro-economic evaluation of new deal for young people: job search impacts using LFS data. Policy Studies Institute.

Evaluation of New Deal for Young People in Scotland: phase 1
Lakey, J. and Knight, G. 2001. Evaluation of New Deal for Young People in Scotland: phase 1. Edinburgh, Scotland Scottish Executive Central Research Unit.

Earnings top-up evaluation: effects on unemployed people
Smith, A., Dorsett, R. and McKnight, A. 2001. Earnings top-up evaluation: effects on unemployed people. Leeds, UK Corporate Document Services.

Earnings top-up evaluation : effects on low-paid workers
Marsh, A., Stephenson, A. and Dorsett, R. 2001. Earnings top-up evaluation : effects on low-paid workers. Leeds, UK Corporate Document Services.

New Deal for Young People in Scotland - phase 1
Lakey, J. and Knight, G. 2001. New Deal for Young People in Scotland - phase 1. Edinburgh Scottish Executive Central Research Unit.

Enterprise and Lifelong Learning research findings no.1: New Deal for Young People in Scotland - phase 1
Lakey, J. and Knight, G. 2001. Enterprise and Lifelong Learning research findings no.1: New Deal for Young People in Scotland - phase 1. Edinburgh Scottish Executive Central Research Unit.

Macro-economic evaluation of new deal for young people: job search impacts using LFS data
Knight, G. 2001. Macro-economic evaluation of new deal for young people: job search impacts using LFS data. Policy Studies Institute.

Workless couples: modelling labour market transitions
Dorsett, R. 2001. Workless couples: modelling labour market transitions. Sheffield, UK Employment Service.

Workless couples: characteristics and labour market transitions
Dorsett, R. 2001. Workless couples: characteristics and labour market transitions. Sheffield, UK Employment Service.

New deal for young people: national survey of participants: stage 2
Bonjour, D., Dorsett, R., Knight, G., Lissenburgh, S., Mukherjee, A., Payne, J., Range, M., Urwin, P.J. and White, M. 2001. New deal for young people: national survey of participants: stage 2. Sheffield, UK Employment Service.

Joint claims for JSA: quantitative survey stage 1: potential claimants
Bonjour, D., Dorsett, R. and Knight, G. 2001. Joint claims for JSA: quantitative survey stage 1: potential claimants. Sheffield, UK Employment Service.

The degree of monopsony power in agricultural labour markets, and the impact of the agricultural minimum wage: an application to craft workers in England and Wales
Burton, M. and Dorsett, R. 2001. The degree of monopsony power in agricultural labour markets, and the impact of the agricultural minimum wage: an application to craft workers in England and Wales. Applied Economics. 33 (14), pp. 1775-1784.

Lifetime experiences of self-employment
Knight, G. and McKay, S. 2000. Lifetime experiences of self-employment. Leeds, UK Corporate Document Services.

Heaven knows I'm miserable now: job insecurity in the British labour market
Gregg, P., Knight, G. and Wadsworth, J. 2000. Heaven knows I'm miserable now: job insecurity in the British labour market. in: Heery, E. and Salmon, J. (ed.) The insecure workforce London Routledge. pp. 39-56

New deal for young people: national survey of participants: stage 1
Bryson, A., Knight, G. and White, M. 2000. New deal for young people: national survey of participants: stage 1. Sheffield, UK Employment Service.

Worker Displacement in Australia and Britain
Borland, J., Gregg, P., Knight, G. and Wadsworth, J. 1999. Worker Displacement in Australia and Britain. Canada CILN-Upjohn Institute.

A Review of US and European Literature on the Microeconomic Effects of Labour Market Programmes for Young People
Auspos, P., Riccio, J.A. and White, M. 1999. A Review of US and European Literature on the Microeconomic Effects of Labour Market Programmes for Young People. Sheffield Employment Service.

The cost of job loss
Gregg, P., Knight, G. and Wadsworth, J. 1999. The cost of job loss. in: Gregg, P. and Wadsworth, J. (ed.) The state of working Britain Manchester Manchester University Press. pp. 249-258

What it costs to lose your job
Gregg, P., Knight, G. and Wadsworth, J. 1998. What it costs to lose your job. CentrePiece. 3 (3).

Tradables: developing output and price measures for Australia's tradable and non-tradable sectors
Knight, G. and Johnson, L. 1997. Tradables: developing output and price measures for Australia's tradable and non-tradable sectors. Australian Bureau of Statistics.

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