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The Long-Term Impacts of Vocational Rehabilitation

Author

Listed:
  • Westlie, Lars

    (Ragnar Frisch Centre of Economic Research)

Abstract

This paper investigates empirically how five different vocational rehabilitation (VR) programs affect the transition rate into employment, the consecutive monthly earnings and the employment duration. VR programs increase the employment probability of the participants, but this effect varies substantially between the different programs. VR programs also lead to more stable jobs while the impact on monthly earnings is of minor magnitude. The costs and revenues of the VR programs are calculated, based on the estimated model. The results of wage subsidies, public education and work training in ordinary firms are noteworthy. The employment effect is clearly the strongest factor relative to the job quality effects, in describing the economic return of the VR programs.

Suggested Citation

  • Westlie, Lars, 2008. "The Long-Term Impacts of Vocational Rehabilitation," Memorandum 25/2008, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2008_025
    as

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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2008/Memo-25-2008.pdf
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    More about this item

    Keywords

    Vocational rehabilitation; program evaluation; multivariate hazards; costbenefit analysis;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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