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The Impacts of Vocational Rehabilitation

Author

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  • Markussen, Simen

    () (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    () (Ragnar Frisch Centre for Economic Research)

Abstract

Based on local variations in vocational rehabilitation (VR) priorities, we examine the impacts of alternative VR programs on short- and long-term labor market outcomes for temporary disability insurance (TDI) claimants in Norway. The analysis builds on rich and detailed administrative registers covering 345,000 claimants. We find that a strategy focusing on rapid placement in the regular labor market is superior to alternative strategies giving higher priority to vocational training or sheltered employment. Strategies prioritizing subsidized regular education also tend to be relatively successful in terms of final outcomes, but at the cost of protracted periods of benefit dependency first.

Suggested Citation

  • Markussen, Simen & Røed, Knut, 2014. "The Impacts of Vocational Rehabilitation," IZA Discussion Papers 7892, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7892
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    References listed on IDEAS

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    1. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
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    Cited by:

    1. Annabelle Doerr & Bernd Fitzenberger & Thomas Kruppe & Marie Paul & Anthony Strittmatter, 2017. "Employment and Earnings Effects of Awarding Training Vouchers in Germany," ILR Review, Cornell University, ILR School, vol. 70(3), pages 767-812, May.
    2. Simen Markussen & Knut Røed, 2016. "Leaving Poverty Behind? The Effects of Generous Income Support Paired with Activation," American Economic Journal: Economic Policy, American Economic Association, vol. 8(1), pages 180-211, February.
    3. Kools, Lieke & Koning, Pierre, 2018. "Graded Return-To-Work as a Stepping Stone to Full Work Resumption," IZA Discussion Papers 11471, Institute for the Study of Labor (IZA).
    4. Kai Rehwald & Michael Rosholm & Bénédicte Rouland, 2015. "Does Activating Sick-Listed Workers Work? Evidence from a Randomized Experiment," Working Papers hal-01228454, HAL.
    5. 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.
    6. Markussen, Simen & Røed, Knut & Schreiner, Ragnhild C., 2015. "Can Compulsory Dialogues Nudge Sick-Listed Workers Back to Work?," IZA Discussion Papers 9090, Institute for the Study of Labor (IZA).
    7. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2018. "Immigrant Responses to Social Insurance Generosity," IZA Discussion Papers 11482, Institute for the Study of Labor (IZA).
    8. repec:bla:indres:v:56:y:2017:i:1:p:161-190 is not listed on IDEAS
    9. Hagen, Tobias, 2016. "Econometric Evaluation of a Placement Coaching Program for Recipients of Disability Insurance Benefits in Switzerland," Annual Conference 2016 (Augsburg): Demographic Change 145736, Verein für Socialpolitik / German Economic Association.
    10. Hagen, Tobias, 2016. "Econometric evaluation of a placement coaching program for recipients of disability insurance benefits in Switzerland," Working Paper Series: Business and Law 10, Frankfurt University of Applied Sciences, Faculty of Business and Law.

    More about this item

    Keywords

    treatment effects; social insurance; vocational rehabilitation; program evaluation;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • 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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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