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Does Privatization of Vocational Rehabilitation Improve Labor Market Opportunities? Evidence from a Field Experiment in Sweden

Author

Listed:
  • Laun, Lisa

    () (Department of Economics, Stockholm University and the Institute for Evaluation of Labour Market and Education Policy (IFAU))

  • Skogman Thoursie, Peter

    () (Department of Economics, Stockholm University and the Institute for Evaluation of Labour Market and Education Policy (IFAU))

Abstract

This paper analyzes if privatization of vocational rehabilitation can improve labor 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 o ffered private and public rehabilitation. We find no diff erences 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 privatizing vocational rehabilitation.

Suggested Citation

  • Laun, Lisa & Skogman Thoursie, Peter, 2012. "Does Privatization of Vocational Rehabilitation Improve Labor Market Opportunities? Evidence from a Field Experiment in Sweden," Research Papers in Economics 2012:13, Stockholm University, Department of Economics.
  • Handle: RePEc:hhs:sunrpe:2012_0013
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Crépon, Bruno & van den Berg, Gerard J., 2016. "Active labor market policies," Working Paper Series 2016:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. 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.
    3. 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).
    4. repec:eee:labeco:v:45:y:2017:i:c:p:169-187 is not listed on IDEAS
    5. Ziebarth, Nicolas R., 2017. "Social Insurance and Health," IZA Discussion Papers 10918, Institute for the Study of Labor (IZA).
    6. 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.
    7. 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.
    8. 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).
    9. 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).

    More about this item

    Keywords

    Vocational rehabilitation; Privatization; 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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