Providing employment-related services, including supported employment through job coaches, to individuals with developmental disabilities has been a priority in federal policy for the past twenty years starting with the Developmental Disabilities Assistance and Bill of Rights Act in 1984. We take advantage of a unique panel data set of all clients served by the SC Department of Disabilities and Special Needs between 1999 and 2005 to investigate whether job coaching leads to stable employment in community settings. The data contain information on individual characteristics, such as IQ and the presence of emotional and behavioral problems, that are likely to aff ect both employment propensity and likelihood of receiving job coaching. We control for unobserved heterogeneity and endogeneity using fi xed eff ects and instrumental variable models. Our results show that unobserved individual characteristics and endogeneity strongly bias naive estimates of the eff ects of job coaching. However, even after controlling for these, an economically and statistically signifi cant e ffect remains. J
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
10255.
Find related papers by JEL classification: J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
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