The Effect of Making a Voluntary Labour Market Programme Compulsory: Evidence from a UK Experiment

This paper investigates the effects on employment and benefit receipt of making a voluntary active labour market programme compulsory. This policy change, which targeted long-term unemployed people over the age of 50, was piloted in a number of areas within the UK and evaluated by individual random assignment of the requirement to participate. The results show that mandating participation resulted in a sustained increase in employment and a corresponding reduction in benefit receipt. The results were driven at least in part by a deterrent effect.