Long-Term Effects of Individual Placement and Support Services for Disability Benefits Recipients with Severe Mental Illnesses

28 Pages Posted: 13 Oct 2020

See all articles by Marloes De Graaf-Zijl

Marloes De Graaf-Zijl

affiliation not provided to SSRN

Marcel Spijkerman

affiliation not provided to SSRN

Wim Zwinkels

TNO Quality of Life - Work and Employment

Abstract

This paper examines a broad set of short- and long-term impacts of Individual Placement and Support (IPS) for disability benefit recipients with severe mental disabilities. IPS is a specific intervention that first aims to place an individual in employment and subsequently trains the worker on the job. We compare the outcomes for IPS-recipients to a control group that received traditional vocational rehabilitation (TVR) services. We use administrative data to apply difference-in-difference estimation on a matched sample of 513 IPS recipients and almost 23,000 TVR-recipients in the Netherlands.Our results show that from six months after the start of the treatment onwards employment probabilities of IPS participants significantly outperform those of TVR participants. The higher probability to be in competitive employment does not come at the expense of fewer work in sheltered employment or trial periods. Nor do they come at the expense of shorter working hours or lower wages. The share of people on disability benefits declines equally in both group for quite some time after the start of the intervention but there is some indication that the benefit dependency in the long run declines faster for IPS recipients. Effects regarding medical costs are not statistically significant.

Keywords: program evaluation, treatment effects, vocational rehabilitation, individual placement and support, temporary disability, labor supply, social insurance

JEL Classification: C21, H51, H55, I38, J22, J24

Suggested Citation

De Graaf-Zijl, Marloes and Spijkerman, Marcel and Zwinkels, Wim, Long-Term Effects of Individual Placement and Support Services for Disability Benefits Recipients with Severe Mental Illnesses. IZA Discussion Paper No. 13772, Available at SSRN: https://ssrn.com/abstract=3708634

Marloes De Graaf-Zijl (Contact Author)

affiliation not provided to SSRN

No Address Available

Marcel Spijkerman

affiliation not provided to SSRN

No Address Available

Wim Zwinkels

TNO Quality of Life - Work and Employment ( email )

P.O. Box 718
AS Hoofddorp, 2130
Netherlands

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