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The effects of targeted labour market programs for job seekers with occupational disabilities

Author

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  • Angelov, Nikolay

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

  • Eliason, Marcus

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

Abstract

In this study, we estimate the effects of three targeted labour market programmes (LMPs) on the labour market outcomes of occupationally disabled job seekers. Using propensity score matching, we estimate the average treatment effect on the treated of wage subsi-dies, sheltered public employment, and employment at Samhall, a Swedish state-owned company whose aim is to provide employment for persons with disabilites. The control group consists of individuals who are eligible for the targeted LMPs, but have not (yet) received treatment. Using a rich panel data set, containing demographics as well as health and sickness absence measures, we are able to estimate short- to medium-term effects. Our results show large positive effects of all LMPs on labour income, disposable income and employment, and the effects are relatively persistent. However, consistant with the previous empirical literature, we find considerable locking-in effects, measured by a de-crease in un-subsidized employment. Furthermore, the yearly amounts of disability insur-ance paid decrease as a result of program participation, and the decrease becomes more pronounced with time since treatment start. Finally, the effects on disability insurance prevalence are heterogenous, both with respect to the different LMPs and gender.

Suggested Citation

  • Angelov, Nikolay & Eliason, Marcus, 2014. "The effects of targeted labour market programs for job seekers with occupational disabilities," Working Paper Series 2014:27, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2014_027
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    References listed on IDEAS

    as
    1. Johansson, Per & Palme, Marten, 1996. "Do economic incentives affect work absence? Empirical evidence using Swedish micro data," Journal of Public Economics, Elsevier, vol. 59(2), pages 195-218, February.
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    3. Forslund, Anders & Johansson, Per & Lindqvist, Linus, 2004. "Employment subsidies - A fast lane from unemployment to work?," Working Paper Series 2004:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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    5. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 435-445.
    6. Huttunen, Kristiina & Pirttilä, Jukka & Uusitalo, Roope, 2013. "The employment effects of low-wage subsidies," Journal of Public Economics, Elsevier, vol. 97(C), pages 49-60.
    7. Donald B. Rubin, 2005. "Causal Inference Using Potential Outcomes: Design, Modeling, Decisions," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 322-331, March.
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    9. Benjamin Schünemann & Michael Lechner & Conny Wunsch, 2015. "Do Long-Term Unemployed Workers Benefit from Targeted Wage Subsidies?," German Economic Review, Verein für Socialpolitik, vol. 16(1), pages 43-64, February.
    10. Angelov, Nikoay & Eliason, Marcus, 2014. "Factors associated with occupational disability classification," Working Paper Series 2014:25, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    11. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, January.
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    Cited by:

    1. Kevin Hollenbeck, 2015. "Promoting Retention or Reemployment of Workers After a Significant Injury or Illness," Mathematica Policy Research Reports 99caa302888a4be68d16d276c, Mathematica Policy Research.
    2. Massimiliano Agovino & Antonio Garofalo & Katia Marchesano, 2018. "The effects of employment promotion measures on labour market participation of disabled people: the case of Italy," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 135-155, January.

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    More about this item

    Keywords

    Occupational disability; wage subsidies; locking-in effects; treatment effects;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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