Data Issues in Developing Valid ROI Estimates

The Journal of Rehabilitation Administration, 40(1), 35-46, 2019

35 Pages Posted: 5 Mar 2020

See all articles by Steven N. Stern

Steven N. Stern

Stony Brooke University

Christopher M. Clapp

University of Chicago - Harris School of Public Policy

John V. Pepper

University of Virginia - Department of Economics

Robert M. Schmidt

University of Richmond

Date Written: September 1, 2019

Abstract

This paper discusses issues associated with using readily available administrative data in estimating ROI for vocational rehabilitation services. It starts with a discussion of longitudinal outcomes data. The discussion is divided up into labor market outcomes data, other types of outcomes data, necessary sample sizes (power analysis), and ways to deal with people systematically excluded from the outcomes data. Next, the paper focuses on services data. The topics covered include the need for control groups, using service cohort data, different sources of service, and merging service data with outcomes data. Finally, the paper moves to the need for other controlling explanatory variables including discussions of inclusion of demographic explanatory variables and data from local labor markets. Two online appendices to this paper provide additional details through (a) an example of a power analysis to illustrate sample size issues and (b) a discussion of Institutional Review Board issues associated with conducting empirical investigations using administrative data.

Keywords: return on investment (ROI), vocational rehabilitation, longitudinal data, unemployment insurance data, control group, VR service data, personally- identifiable data, explanatory variables

JEL Classification: C81, H51, J24

Suggested Citation

Stern, Steven N. and Clapp, Christopher and Pepper, John V. and Schmidt, Robert M., Data Issues in Developing Valid ROI Estimates (September 1, 2019). The Journal of Rehabilitation Administration, 40(1), 35-46, 2019, Available at SSRN: https://ssrn.com/abstract=3531990

Steven N. Stern

Stony Brooke University

Melville Library N4004
Stony Brook, NY 11794-3384
United States

Christopher Clapp (Contact Author)

University of Chicago - Harris School of Public Policy ( email )

1155 East 60th Street
Chicago, IL 60637
United States

HOME PAGE: http://https://chrisclapp.org/

John V. Pepper

University of Virginia - Department of Economics ( email )

P.O. Box 400182
114 Rouss Hall
Charlottesville, VA 22904-4182
United States
804-924-3402 (Phone)
804-982-2904 (Fax)

Robert M. Schmidt

University of Richmond ( email )

Richmond, VA 23173
United States

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