An econometric evaluation of the effectiveness of in-work support for earnings progression

In many countries, jobseekers who receive unemployment insurance must commit to an action plan to support their return to work and are monitored and coached to ensure compliance. In some countries means-tested benefit claimants who are in regular but low income employment are also subject to monitoring and coaching (M&C), in order that they can progress into jobs with a higher level of income. In this paper we study the impact of M&C on in-work claimants in the United Kingdom using a difference-in-differences design. Drawing on data from a randomised controlled trial of Universal Credit claimants, we find that M&C leads to increased earnings over time. The results do however show considerable heterogeneity by gender, age and across the earnings distribution.