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Employment Effects of Educational Measures for Work-Injured People

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Author Info
Henning Bach () (Danish National Institute of Social Research)
Nabanita Datta Gupta () (Danish National Institute of Social Research, NBER and IZA)
Jan Høgelund () (Danish National Institute of Social Research)

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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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Publisher 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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Related research
Keywords: work injury; return to work; education;

Find related papers by JEL classification:
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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References listed on IDEAS
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  1. Morley Gunderson & Douglas Hyatt, 1996. "Do injured workers pay for reasonable accommodation?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 50(1), pages 92-104, October.
  2. Frölich, Markus & Heshmati, Almas & Lechner, Michael, 2000. "A Microeconometric Evaluation of Rehabilitation of Long-term Sickness in Sweden," Working Paper Series in Economics and Finance 373, Stockholm School of Economics, revised 03 Apr 2000.
    Other versions:
  3. 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.
  4. Leigh, Duane E., 1992. "Retraining displaced workers : what can developing countries learn from OECD nations?," Policy Research Working Paper Series 946, The World Bank. [Downloadable!]
  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. [Downloadable!] (restricted)
  6. 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, Blackwell Publishing, vol. 64(4), pages 487-535, October. [Downloadable!] (restricted)
  7. 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. [Downloadable!]
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