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

  • Jönsson, Lisa

    ()

    (Department of Economics, Stockholm University)

  • Skogman Thoursie, Peter

    ()

    (IFAU - Institute for Labour Market Policy Evaluation)

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 Employment Service and the Social Insurance Agency in Sweden during 2008 to 2010, in which over 4,000 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.

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File URL: http://www.ifau.se/Upload/pdf/se/2012/wp12-02-Does-privatisation-of-vocational-rehabilitation-improve-labour-market-opportunities.pdf
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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2012:2.

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Length: 31 pages
Date of creation: 25 Jan 2012
Date of revision:
Publication status: Published as Laun, Lisa and Peter Skogman Thoursie, 'Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden' in Journal of Health Economics, 2014, pages 59-72.
Handle: RePEc:hhs:ifauwp:2012_002
Contact details of provider: Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
Fax: (+46) 18 - 471 70 71
Web page: http://www.ifau.se/
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