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In this second article about the New Deal, Michal Myck, Research Economist at the Institute for Fiscal Studies looks in more detail at the impact of a particular programme.

In the last issue of the Economic Review we presented the rationale for providing government assistance for the long-term unemployed and we discussed how the New Deal could help in reducing the level of unemployment in the UK. In this article we look at the methods to estimate the effect such programmes might have on the level of unemployment.