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Employment Effects of Educational Measures for Work-Injured People

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Author Info

  • Bach, Henning

    ()
    (SFI - Danish National Centre for Social Research)

  • Datta Gupta, Nabanita

    ()
    (Aarhus University)

  • Høgelund, Jan

    ()
    (SFI - Danish National Centre for Social Research)

Abstract

Vocational rehabilitation in the form of education is the cornerstone of governmental rehabilitation programs for the work-disabled in many countries. Merging a 2004 Danish survey to register information from the Danish National Board of Industrial Injuries, we assess the employment effects of educational measures for the work-injured, by simultaneously estimating the hazard rate to education and the return to work, controlling for unobserved heterogeneity and the endogeneity of education. In addition, we allow for any enhanced employment effects of a unique wage subsidy program in Denmark, giving employers a partial wage subsidy for disabled workers’ wages, by distinguishing between education effects of a return to wage-subsidized work versus a return to ordinary work. Unlike previous studies, we find a positive impact of educational measures on the probability of returning to work for the work injured and a stronger effect for a return to wage-subsidized employment compared to a return to ordinary employment.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2657.

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Length: 32 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2657

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Keywords: work injury; return to work; education;

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  1. Heckman, James J & Smith, Jeffrey, 1997. "Making the Most Out of Programme Evaluations and Social Experiments: Accounting for Heterogeneity in Programme Impacts," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 487-535, October.
  2. Heshmati, Almas & Engström, Lars-Gunnar, 1999. "Estimating the Effects of Vocational Rehabilitation Programs in Sweden," Working Paper Series in Economics and Finance 293, Stockholm School of Economics, revised 07 May 1999.
  3. Markus Frölich & Almas Heshmati & Michael Lechner, 2004. "A microeconometric evaluation of rehabilitation of long-term sickness in Sweden," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 375-396.
  4. Jan Høgelund & Anders Holm, . "The Reservation Wage Theory, Vocational Rehabilitation and the Return to Work of Disabled Employees," CAM Working Papers 2006-07, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  5. Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
  6. Leigh, Duane E., 1992. "Retraining displaced workers : what can developing countries learn from OECD nations?," Policy Research Working Paper Series 946, The World Bank.
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