Econometric Evaluation of a Placement Coaching Program for Recipients of Disability Insurance Benefits in Switzerland

Frankfurt Research Institute for Business and Law Working Paper No. 10

48 Pages Posted: 8 Apr 2016

See all articles by Tobias Hagen

Tobias Hagen

Frankfurt University of Applied Sciences - ReLUT - Research Lab for Urban Transport

Date Written: March 24, 2016

Abstract

This paper evaluates a placement coaching program implemented in Zurich during 2009–2013 that focused on the reemployment of persons drawing disability insurance (DI) benefits. A private company was commissioned to implement the program. Kernel-based matching and radius matching with bias adjustment estimators combined with difference-in-differences are applied to administrative panel data. The estimates point to a successful project in terms of a reduction in DI benefits and an increase in income even in the medium-run. A simple cost–benefit analysis suggests that the project was a profitable investment for the social security system. Sensitivity analyses indicate that the results are robust to confounders and further specification issues. An interesting policy implication is that it seems possible to enhance the employment prospects of disabled persons with a relatively inexpensive intervention which does not include any explicit investments in human capital.

Keywords: rehabilitation, placement coaching, disability, evaluation, matching

JEL Classification: I38, J08, J14, J64

Suggested Citation

Hagen, Tobias, Econometric Evaluation of a Placement Coaching Program for Recipients of Disability Insurance Benefits in Switzerland (March 24, 2016). Frankfurt Research Institute for Business and Law Working Paper No. 10, Available at SSRN: https://ssrn.com/abstract=2742182 or http://dx.doi.org/10.2139/ssrn.2742182

Tobias Hagen (Contact Author)

Frankfurt University of Applied Sciences - ReLUT - Research Lab for Urban Transport

Germany

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