In response to the EMA, students reduced their time in work significantly. Those in full-time education reduced their earnings by over 10% in response to the extra income. [4/10] - ThreadSky

theifs.bsky.social • 3 days ago

In response to the EMA, students reduced their time in work significantly. Those in full-time education reduced their earnings by over 10% in response to the extra income.

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theifs.bsky.social•3 days ago

However, the EMA didn’t lead to improved performance to school for recipients. There was no increase in vocational qualifications or A Levels, and no increase in university attendance.

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theifs.bsky.social•3 days ago

The EMA even had negative effects on employment and earnings in the long run: students were less likely to be earning enough to qualify for National Insurance and more likely to receive out-of-work benefits.

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theifs.bsky.social•3 days ago

For those in employment, the EMA also led to possible negative effects: we estimate annual earnings fell by around 1% as a result of the EMA.

Cumulatively across their twenties, this meant the EMA generated a statistically significant reduction in earnings of 3.5%.

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theifs.bsky.social•3 days ago

There is tentative evidence that the EMA resulted in a small reduction in criminal behaviour.

Students who performed poorly at GCSE, who were most likely to be brought into education, also saw some reductions in criminal convictions – around 7% – as a result.

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theifs.bsky.social•3 days ago

In total, the Education Maintenance Allowance only provided around 40p of benefits to students for every £1 spent.

The large direct benefits for students receiving the cash were lost due to reductions in employment and wages.

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theifs.bsky.social•3 days ago

“The EMA, which cost billions through the 2000s, did not have the hoped-for positive effects.”

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