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The Impacts of Vocational Rehabilitation

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Author Info

  • Markussen, Simen

    ()
    (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    ()
    (Ragnar Frisch Centre for Economic Research)

Abstract

Based on local variations in vocational rehabilitation (VR) priorities, we examine the impacts of alternative VR programs on short- and long-term labor market outcomes for temporary disability insurance (TDI) claimants in Norway. The analysis builds on rich and detailed administrative registers covering 345,000 claimants. We find that a strategy focusing on rapid placement in the regular labor market is superior to alternative strategies giving higher priority to vocational training or sheltered employment. Strategies prioritizing subsidized regular education also tend to be relatively successful in terms of final outcomes, but at the cost of protracted periods of benefit dependency first.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7892.

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Length: 37 pages
Date of creation: Jan 2014
Date of revision:
Handle: RePEc:iza:izadps:dp7892

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Related research

Keywords: treatment effects; social insurance; vocational rehabilitation; program evaluation;

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References

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  1. Fevang, Elisabeth & Hardoy, Inés & Røed, Knut, 2013. "Getting Disabled Workers Back to Work: How Important Are Economic Incentives?," IZA Discussion Papers 7137, Institute for the Study of Labor (IZA).
  2. John Bound, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," NBER Working Papers 2816, National Bureau of Economic Research, Inc.
  3. Card, David & Kluve, Jochen & Weber, Andrea, 2009. "Active Labor Market Policy Evaluations: A Meta-Analysis," IZA Discussion Papers 4002, Institute for the Study of Labor (IZA).
  4. Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2010. "Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt," Working Papers 853, RAND Corporation Publications Department.
  5. Duggan, Mark, 2005. "Do new prescription drugs pay for themselves?: The case of second-generation antipsychotics," Journal of Health Economics, Elsevier, vol. 24(1), pages 1-31, January.
  6. 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.
  7. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, vol. 24(C), pages 137-150.
  8. Till von Wachter & Jae Song & Joyce Manchester, 2011. "Trends in Employment and Earnings of Allowed and Rejected Applicants to the Social Security Disability Insurance Program," American Economic Review, American Economic Association, vol. 101(7), pages 3308-29, December.
  9. Markussen, Simen & Mykletun, Arnstein & Røed, Knut, 2010. "The Case for Presenteeism," IZA Discussion Papers 5343, Institute for the Study of Labor (IZA).
  10. Joseph J. Doyle Jr., 2008. "Child Protection and Adult Crime: Using Investigator Assignment to Estimate Causal Effects of Foster Care," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 746-770, 08.
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Cited by:
  1. Markussen, Simen & Røed, Knut, 2014. "Leaving Poverty Behind? The Effects of Generous Income Support Paired with Activation," IZA Discussion Papers 8245, Institute for the Study of Labor (IZA).

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