Exploring the effects of integrated benefit systems andactive labour market policies: Evidence from JobcentrePlus in the UK

In April 2002 Jobcentre Plus started to operate in the UK bringing together theservice of the Benefits Agency and the Employment Service. Offering a fullyintegrated benefit claiming and work placement/job-seeking service for peopleof working age this new organisation aims to strengthen the link betweenwelfare and work. Due to the magnitude of the associated organisationalchange, the national roll-out of the new organisation is being implementedgradually over a transitional period ending in 2006. During this transitionalperiod some local offices are fully integrated while others functions remain splitbetween pre-existing Benefits Agency and Employment Service offices. In thispaper we examine how changes in the level of integration (measured as thepercentage of offices within districts offering the integrated Jobcentre Plusservice) within districts over time affected performance with respect to jobentry, benefit service and customer service delivery. Our analysis suggests thatJobcentre Plus has a clear positive effect on job entry outcomes for all clientgroups, a negative effect on business delivery while it has neither a positive nora negative effect on customer service outcomes.[...]