The Effects of Vocational Rehabilitation for People with Mental Illlness
: The public-sector Vocational Rehabilitation (VR) program is a $3 billion federal-state partnership designed to provide employment-related assistance to persons with disabilities. There is, however, relatively little-known about the long-term efficacy of VR programs. This paper utilizes unique and detailed administrative and employment data to examine both short and longer-term employment impacts for all persons diagnosed with mental illness who applied for VR services in the state of Virginia in State Fiscal Year 2000. These data provide quarterly information on VR services and employment outcomes from 1995 to 2010. Estimates from our model of service provision and labor market outcomes reveal that VR services generally have positive long-run labor market outcome effects that appear to substantially exceed the cost of providing services.
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