A study was conducted to address the question of what impact the expansion of employment and training programs for youth (such as the Youth Employment Demonstration Projects Act of 1977) is likely to have on employment and unemployment of young people. The method used in the analysis was to specify a model (similar to the Markov model) of the…

This paper develops an approach to estimating the effect of government employment and training programs on measured unemployment. The theoretical aspects of the method draws heavily on earlier work on labor market flow equilibrium (see note). Previous estimates of the direct or statistical impact of government programs on the unemployment rate…