IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp13772.html
   My bibliography  Save this paper

Long-Term Effects of Individual Placement and Support Services for Disability Benefits Recipients with Severe Mental Illnesses

Author

Listed:
  • De Graaf-Zijl, Marloes

    (UWV Netherlands Social Security Institute)

  • Spijkerman, Marcel

    (UWV Netherlands Social Security Institute)

  • Zwinkels, Wim

    (Epsilon Research)

Abstract

This paper examines a broad set of short- and long-term impacts of Individual Placement and Support (IPS) for disability benefit recipients with severe mental disabilities. IPS is a specific intervention that first aims to place an individual in employment and subsequently trains the worker on the job. We compare the outcomes for IPS-recipients to a control group that received traditional vocational rehabilitation (TVR) services. We use administrative data to apply difference-in-difference estimation on a matched sample of 513 IPS recipients and almost 23,000 TVR-recipients in the Netherlands. Our results show that from six months after the start of the treatment onwards employment probabilities of IPS participants significantly outperform those of TVR participants. The higher probability to be in competitive employment does not come at the expense of fewer work in sheltered employment or trial periods. Nor do they come at the expense of shorter working hours or lower wages. The share of people on disability benefits declines equally in both group for quite some time after the start of the intervention but there is some indication that the benefit dependency in the long run declines faster for IPS recipients. Effects regarding medical costs are not statistically significant.

Suggested Citation

  • De Graaf-Zijl, Marloes & Spijkerman, Marcel & Zwinkels, Wim, 2020. "Long-Term Effects of Individual Placement and Support Services for Disability Benefits Recipients with Severe Mental Illnesses," IZA Discussion Papers 13772, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13772
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp13772.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kai Rehwald & Michael Rosholm & Bénédicte Rouland, 2015. "Does Activating Sick-Listed Workers Work? Evidence from a Randomized Experiment," Working Papers hal-01228454, HAL.
    2. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
    3. Jody Schimmel Hyde & Todd Honeycutt & David Stapleton, 2014. "The relationship between timely delivery of vocational rehabilitation services and subsequent federal disability benefit application and receipt," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-19, December.
    4. David Dean & John Pepper & Robert Schmidt & Steven Stern, 2014. "State vocational rehabilitation programs and federal disability insurance: an analysis of Virginia’s vocational rehabilitation program," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-19, December.
    5. Michele Campolieti & Morley Gunderson & Jeffrey Smith, 2014. "The effect of vocational rehabilitation on the employment outcomes of disability insurance beneficiaries: new evidence from Canada," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-29, December.
    6. David Dean & John Pepper & Robert Schmidt & Steven Stern, 2015. "The Effects Of Vocational Rehabilitation For People With Cognitive Impairments," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56, pages 399-426, May.
    7. Jody Schimmel Hyde & Todd Honeycutt & David Stapleton, "undated". "The Relationship Between Timely Delivery of Vocational Rehabilitation Services and Subsequent Federal Disability Benefit Application and Receipt," Mathematica Policy Research Reports d3c41b675cc04a149fc768d62, Mathematica Policy Research.
    8. Eichler, Martin & Lechner, Michael, 2002. "An evaluation of public employment programmes in the East German State of Sachsen-Anhalt," Labour Economics, Elsevier, vol. 9(2), pages 143-186, April.
    9. Simen Markussen & Knut Røed & Ragnhild C. Schreiner, 2018. "Can Compulsory Dialogues Nudge Sick†listed Workers Back to Work?," Economic Journal, Royal Economic Society, vol. 128(610), pages 1276-1303, May.
    10. Kools, Lieke & Koning, Pierre, 2019. "Graded return-to-work as a stepping stone to full work resumption," Journal of Health Economics, Elsevier, vol. 65(C), pages 189-209.
    11. Holm, Anders & Høgelund, Jan & Gørtz, Mette & Rasmussen, Kristin Storck & Houlberg, Helle Sofie Bøje, 2017. "Employment effects of active labor market programs for sick-listed workers," Journal of Health Economics, Elsevier, vol. 52(C), pages 33-44.
    12. Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gina Livermore & David Wittenburg & David Neumark, 2014. "Finding alternatives to disability benefit receipt," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-9, December.
    2. Michelle Yin & Garima Siwach & Dajun Lin, 2023. "Vocational Rehabilitation Services and Labor Market Outcomes for Transition‐Age Youth with Disabilities in Maine," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(1), pages 166-197, January.
    3. Kools, Lieke & Koning, Pierre, 2019. "Graded return-to-work as a stepping stone to full work resumption," Journal of Health Economics, Elsevier, vol. 65(C), pages 189-209.
    4. Hagen, Tobias, 2016. "Econometric Evaluation of a Placement Coaching Program for Recipients of Disability Insurance Benefits in Switzerland," VfS Annual Conference 2016 (Augsburg): Demographic Change 145736, Verein für Socialpolitik / German Economic Association.
    5. Hagen, Tobias, 2016. "Econometric evaluation of a placement coaching program for recipients of disability insurance benefits in Switzerland," Working Paper Series 10, Frankfurt University of Applied Sciences, Faculty of Business and Law.
    6. Holm, Anders & Høgelund, Jan & Gørtz, Mette & Rasmussen, Kristin Storck & Houlberg, Helle Sofie Bøje, 2017. "Employment effects of active labor market programs for sick-listed workers," Journal of Health Economics, Elsevier, vol. 52(C), pages 33-44.
    7. Szabó, Lajos Tamás, 2022. "A közfoglalkoztatottak jellemzői [The characteristics of public workers]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1114-1156.
    8. Fitzenberger, Bernd & Furdas, Marina & Sajons, Christoph, 2016. "End-of-year spending and the long-run employment effects of training programs for the unemployed," Freiburg Discussion Papers on Constitutional Economics 16/08, Walter Eucken Institut e.V..
    9. Caroline Hall & Inés Hardoy & Kristine Simson, 2024. "Policies for young adults with reduced work capacity. Labour market impact in Sweden and Norway," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-33, March.
    10. Dauth, Christine, 2017. "Regional discontinuities and the effectiveness of further training subsidies for low-skilled employees," IAB-Discussion Paper 201707, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Marco Caliendo & Steffen Künn & Robert Mahlstedt, 2022. "The Intended and Unintended Effects of Promoting Labor Market Mobility," CEPA Discussion Papers 42, Center for Economic Policy Analysis.
    12. Pons Rotger, Gabriel & Rosholm, Michael, 2020. "The Role of Beliefs in Long Sickness Absence: Experimental Evidence from a Psychological Intervention," IZA Discussion Papers 13582, Institute of Labor Economics (IZA).
    13. Yannick L'Horty & François Maheu, 2024. "La mobilité professionnelle des personnes en situation de handicap : une étude de cas sur l’établissement public de la Caisse des Dépôts," TEPP Research Report 2024-06, TEPP.
    14. Rehwald, Kai & Rosholm, Michael & Rouland, Bénédicte, 2018. "Labour market effects of activating sick-listed workers," Labour Economics, Elsevier, vol. 53(C), pages 15-32.
    15. Daniel Gubits & David Stapleton & Stephen Bell & Michelle Wood & Denise Hoffman & Sarah Croake & David R. Mann & Judy Geyer & David Greenberg & Austin Nichols & Andrew McGuirk & Meg Carroll & Utsav Ka, "undated". "BOND Implementation and Evaluation: Final Evaluation Report, Volume 1," Mathematica Policy Research Reports fac39cd85b944c528e7acbb5d, Mathematica Policy Research.
    16. Taina Leinonen & Eira Viikari-Juntura & Heikki Räisänen & Santtu Sundvall & Antti Kauhanen & Svetlana Solovieva, 2021. "Does Work Disability Contribute to Trajectories of Work Participation before and after Vocational Labour Market Training for Job Seekers?," IJERPH, MDPI, vol. 18(3), pages 1-17, February.
    17. Jody Schimmel Hyde & Paul O'Leary, "undated". "Social Security Administration Payments to State Vocational Rehabilitation Agencies for Beneficiaries Who Work: Evidence from Linked Administrative Data," Mathematica Policy Research Reports d6bf1150b82f4ef88a0c75a6f, Mathematica Policy Research.
    18. von Simson Kristine & Hardoy Inés, 2020. "Tackling disabilities in young age—Policies that work," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-27, March.
    19. Christine Mayrhuber & Benjamin Bittschi, 2021. "Fehlzeitenreport 2021. Krankheits- und unfallbedingte Fehlzeiten in Österreich – Frühintervention, Wiedereingliederung und mentale Gesundheit," WIFO Studies, WIFO, number 68042, March.
    20. Collewet, Marion & Fairley, Kim & Kessels, Roselinde & Knoef, Marike & van Vliet, Olaf, 2024. "The design of welfare: unraveling taxpayers' preferences," OSF Preprints 4am7e, Center for Open Science.

    More about this item

    Keywords

    program evaluation; treatment effects; vocational rehabilitation; individual placement and support; temporary disability; labor supply; social insurance;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp13772. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.