Volume 18, Number 4 (Fall) 1983
Farkas, George, D. Alton Smith, and Ernst W. Stromsdorfer. 1983. "The Youth Entitlement Demonstration: Subsidized Employment with a Schooling Requirement." Journal of Human Resources 18(4):557-573.
The YIEPP offered a minimum wage job, part-time during the school year and full-time during the summer, to l6-19-year-olds from low-income households who had not as yet graduated from high school and who were enrolled in school. Our finding of large positive employment effects for this population is strong evidence that the unemployment of these youths is largely involuntary, due to demand deficiency at the minimum wage. We also find small positive school enrollment effects, and an employment displacement rate of 31.6 percent-that is, 31.6 percent of subsidized employment would have been available for the target population even in the absence of the program.
The authors' affiliations are, respectively, School of Social Sciences.
University of Texas at Dallas; School of Social Sciences, U.S. Military Academy;
and Abt Associates Inc.
* Portions of the work reported here were funded by Manpower Demonstration
Research Corporation (MDRC) under contract to Abt Associates Inc. MDRC was, in
turn, funded by the Employment and Training Administration, U.S. Department of
Labor. The points of view or opinions stated in this paper do not necessarily
represent the official position or policy of the supporting funding agencies.
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