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Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden

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  • Laun, Lisa
  • Thoursie, Peter Skogman

Abstract

This paper analyses if privatisation of vocational rehabilitation can improve labour market opportunities for individuals on long-term sickness absence. We use a field experiment performed by the Public Employment Service and the Social Insurance Agency in Sweden during 2008–2010, in which over 4000 participants were randomly offered private and public rehabilitation. We find no differences 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 privatising vocational rehabilitation.

Suggested Citation

  • Laun, Lisa & Thoursie, Peter Skogman, 2014. "Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden," Journal of Health Economics, Elsevier, vol. 34(C), pages 59-72.
  • Handle: RePEc:eee:jhecon:v:34:y:2014:i:c:p:59-72
    DOI: 10.1016/j.jhealeco.2013.12.002
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    Citations

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    Cited by:

    1. Pedersen, Morten Saaby & Arendt, Jacob Nielsen, 2014. "Bargaining for health: A case study of a collective agreement-based health program for manual workers," Journal of Health Economics, Elsevier, vol. 37(C), pages 123-136.
    2. Cockx, Bart & Baert, Stijn, 2015. "Contracting Out Mandatory Counselling and Training for Long-Term Unemployed: Private For-Profit or Non-Profit, or Keep It Public?," IZA Discussion Papers 9459, Institute for the Study of Labor (IZA).
    3. Ziebarth, Nicolas R., 2017. "Social Insurance and Health," IZA Discussion Papers 10918, Institute for the Study of Labor (IZA).
    4. Gesine Stephan, 2016. "Public or private job placement services—Are private ones more effective?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 285-285, August.
    5. Crépon, Bruno & van den Berg, Gerard J., 2016. "Active Labor Market Policies," IZA Discussion Papers 10321, Institute for the Study of Labor (IZA).
    6. Rehwald, Kai & Rosholm, Michael & Svarer, Michael, 2015. "Are Public or Private Providers of Employment Services More Effective? Evidence from a Randomized Experiment," IZA Discussion Papers 9365, Institute for the Study of Labor (IZA).
    7. repec:eee:labeco:v:45:y:2017:i:c:p:169-187 is not listed on IDEAS
    8. Udo Schneider & Roland Linder & Frank Verheyen, 2016. "Long-term sick leave and the impact of a graded return-to-work program: evidence from Germany," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(5), pages 629-643, June.
    9. Gerdes, Christer, 2015. "Does Performance Information Affect Job Seekers in Selecting Private Providers in Voucher-Based ALMP Programs?," IZA Discussion Papers 8992, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Vocational rehabilitation; Privatisation; Field experiment;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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