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International audience ; Incapacity Benefit claimants are the primary target group in the next phase of the Government's Welfare-to-Work strategy. In this paper we perform a decomposition to statistically account for the part played by area-based and individual-based factors, in differential rates of employment, unemployment, inactivity and recorded sickness, across NUTS level 2 areas. Spatial variation in long-term sickness and disability cannot simply be attributed to prevailing population structures, and is more likely to be a manifestation of regional imbalances in labour demand and supply. The implication is that the success of supply-side policies is likely to be constrained by the concentration of Incapacity Benefit claimants in demand-deficient areas.

Incapacity Benefit claimants are the primary target group in the next phase of the Government's Welfare-to-Work strategy. In this paper we perform a decomposition to statistically account for the part played by area-based and individual-based factors, in differential rates of employment, unemployment, inactivity and recorded sickness, across NUTS level 2 areas. Spatial variation in long-term sickness and disability cannot simply be attributed to prevailing population structures, and is more likely to be a manifestation of regional imbalances in labour demand and supply. The implication is that the success of supply-side policies is likely to be constrained by the concentration of Incapacity Benefit claimants in demand-deficient areas.

ABSTRACTThis paper examines the transitions between the labour market and inactivity in Britain between 1995 and 2004. A substantial degree of behavioural heterogeneity exists between inactive individuals, and the social security system appears to influence both the timing and probability of moving between labour market states. The results presented here suggest that policy makers should not be misled by the term 'hidden unemployment', into thinking that substantial spare capacity exists on the periphery of the labour force. In light of recent proposals to reduce the number of Incapacity Benefit claimants, it is important to note a high degree of detachment among the long‐term sick and disabled, reinforced by duration dependence and poorer educational attainment.

ABSTRACTThis study uses data for nearly 200 further education providers in England to investigate the level of efficiency and change in productivity over the period 1999–2003. Using data envelopment analysis we find that the mean provider efficiency varies between 83 and 90 percent over the period. Productivity change over the period was around 12 percent, and this comprised 8 percent technology change and 4 percent technical efficiency change. A multivariate analysis is therefore performed, which shows that, in general, student‐related variables such as gender, ethnic and age mix are more important than staff‐related variables in determining efficiency levels. The local unemployment rate also has an effect on provider efficiency. The policy implications of the results are that further education providers should implement strategies to improve the completion and achievement rates of white males, and should also offer increased administrative support to teachers.