The community programme revisited

Abstract

Col 557) in which he spoke of "creating new job opportunities", while in the same debate there is reference to the government's own estimate that deadweight will account for between 25 per cent and 50 per cent of the costs of the New Deal wage subsidies. Deadweight refers to the situation where the subsidy fails to induce a different outcome from what would have happened otherwise; that is, the participant would have obtained a job anyway. Displacement occurs when subsidised individuals take the place of existing workers, or are hired in preference to unsubsidised jobseekers, or where organisations using subsidised labour displace others in the market-place.