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The Effects of Vocational Rehabilitation for People with Mental Illlness

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  • Steven Stern
  • John Pepper
  • David Dean
  • Robert Schmidt

Abstract

: 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.

Suggested Citation

  • Steven Stern & John Pepper & David Dean & Robert Schmidt, 2011. "The Effects of Vocational Rehabilitation for People with Mental Illlness," Virginia Economics Online Papers 382, University of Virginia, Department of Economics.
    • Handle: RePEc:vir:virpap:382
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    Cited by:

    1. Todd Honeycutt & Allison Thompkins & Maura Bardos & Steven Stern, "undated". "State Differences in the Vocational Rehabilitation Experiences of Transition-Age Youth with Disabilities," Mathematica Policy Research Reports 2b57dad5f3aa466db95f12cc8, Mathematica Policy Research.

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    More about this item

    Keywords

    etraining; mental illness; 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
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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