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Is Supported Employment Effective for Young Adults with Disability Pension? Evidence from a Swedish Randomized Evaluation

Author

Listed:
  • Mattias Fogelgren
  • Petra Ornstein
  • Magnus Rödin
  • Peter Skogman Thoursie

Abstract

We report results from a large-scale randomized experiment evaluating whether a supported employment rehabilitation intervention strategy can improve labor market opportunities for young adults on disability pension better than regular vocational rehabilitation. The supported employment intervention utilizes a caseworker as backup for the individual during training to reduce employers’ risks when hiring an individual with unclear productivity. In total, 1,062 individuals were randomly assigned between interventions. The main results show that 18 months after the start of the project, participants with supported employment have work rates that are approximately ten percentage points higher than participants who received regular rehabilitation.

Suggested Citation

  • Mattias Fogelgren & Petra Ornstein & Magnus Rödin & Peter Skogman Thoursie, 2023. "Is Supported Employment Effective for Young Adults with Disability Pension? Evidence from a Swedish Randomized Evaluation," Journal of Human Resources, University of Wisconsin Press, vol. 58(2), pages 452-487.
    • Handle: RePEc:uwp:jhriss:v:58:y:2023:i:2:p:452-487
    Note: DOI: https://doi.org/10.3368/jhr.58.4.0319-10105R2
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    More about this item

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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