The Impacts of Vocational Rehabilitation

37 Pages Posted: 25 Jan 2014

See all articles by Simen Markussen

Simen Markussen

University of Oslo - Ragnar Frisch Centre for Economic Research

Knut Roed

Ragnar Frisch Centre for Economic Research; IZA Institute of Labor Economics

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.

Keywords: treatment effects, social insurance, vocational rehabilitation, program evaluation

JEL Classification: C21, C26, H55, I38, J24

Suggested Citation

Markussen, Simen and Røed, Knut, The Impacts of Vocational Rehabilitation. IZA Discussion Paper No. 7892, Available at SSRN: https://ssrn.com/abstract=2385149

Simen Markussen (Contact Author)

University of Oslo - Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0317 Oslo
Norway

Knut Røed

Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0349 Oslo
Norway

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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