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Does Privatization of Vocational Rehabilitation Improve Labor Market Opportunities? Evidence from a Field Experiment in Sweden

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  • Laun, Lisa

    ()
    (Department of Economics, Stockholm University and the Institute for Evaluation of Labour Market and Education Policy (IFAU))

  • Skogman Thoursie, Peter

    ()
    (Department of Economics, Stockholm University and the Institute for Evaluation of Labour Market and Education Policy (IFAU))

Abstract

This paper analyzes if privatization of vocational rehabilitation can improve labor market opportunities for individuals on long-term sickness absence. We use a field experiment performed by the Employment Service and the Social Insurance Agency in Sweden during 2008 to 2010, in which over 4,000 participants were randomly o ffered private and public rehabilitation. We find no diff erences in employment rates following rehabilitation between individuals who received rehabilitation by private and public providers. Also the average cost of rehabilitation was essentially equal for the two types of providers. This suggests that there are no large efficiency gains from privatizing vocational rehabilitation.

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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2012:13.

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Length: 27 pages
Date of creation: 29 Oct 2012
Date of revision:
Handle: RePEc:hhs:sunrpe:2012_0013

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
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Web page: http://www.ne.su.se/
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Keywords: Vocational rehabilitation; Privatization; Field experiment;

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