Essays in Labour Market Economics

This thesis conducts three empirical investigations in the field of labour market economics. First, an investigation into the relationship between mental-health levels with labour market status and labour market transitions is made using longitudinal survey data spanning 25 years. The results show that unemployment and long-term sickness are associated with lower levels of mental-health compared to individuals who are employed. A transition
from employment into unemployment or long-term sickness results in lower levels of mental-health. The reverse transitions, while finding positive effects on mental-health, have asymmetrically lower effect sizes. The next two chapters undertake an evaluation of the In-Work Progression (IWP) Randomised Controlled Trial in the UK. The thesis investigates the impacts of the IWP Active Labour Market Programme (ALMP) over the income distribution of the trial participants to identify how effects varied across income quantiles. The results show that claimants at the higher end of the income distribution achieved higher levels of income progression compared to those at the lower end of the income distribution. The thesis also conducts an examination of how the impact of the trial evolves over time for the participants. Overall, the results show that since entry into the trial, participants have higher income progression over time. The ALMP evaluation results are subsequently analysed between cohorts of men and women, age groups, regions, and Live-service vs Full-service claimants and the estimated effects show considerable heterogeneity.