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Estimating the Effects of Vocational Rehabilitation Programs in Sweden

Author

Listed:
  • Heshmati, Almas

    (Dept. of Economic Statistics, Stockholm School of Economics)

  • Engström, Lars-Gunnar

    (Centre for Public Health Research)

Abstract

This paper estimates the effects of vocational rehabilitation on the probability of improved health status and the reintegration of program participants in the labor market. Bivariate probit models are used to estimate the probability of selection to a rehabilitation program, its effect on the restored work capacity of the participants and their rejoining the labor market. The empirical application is based on a sample of individuals that qualified for the vocational rehabilitation programs and were residing in Western Sweden with long-term sickness observed during 1991 to 1994. The results show variations in the fraction of the sample selected to participate in the rehabilitation programs, the program effects and the importance of individual heterogeneity for the outcome of programs. Participation in the vocational rehabilitation program is found to have a positive effect on the participants' health status and on their rate of return to work. There was no evidence of selection based upon the unobservable characteristics of individuals that are most likely to regain their health or individuals with a higher potential to gain re-employment. The social aspects and health related needs of the participants are more important than the economic efficiency of the vocational rehabilitation programs.

Suggested Citation

  • Heshmati, Almas & Engström, Lars-Gunnar, 1999. "Estimating the Effects of Vocational Rehabilitation Programs in Sweden," SSE/EFI Working Paper Series in Economics and Finance 293, Stockholm School of Economics, revised 10 Sep 1999.
    • Handle: RePEc:hhs:hastef:0293
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    Citations

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    Cited by:

    1. Andrén, Daniela & Thomas, Andrén, 2009. "Starting Sick Leave on Part-Time as a Treatment Method?," Working Papers 2009:10, Örebro University, School of Business.
    2. Markus Frölich & Almas Heshmati & Michael Lechner, 2004. "A microeconometric evaluation of rehabilitation of long-term sickness in Sweden," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 375-396.
    3. Bach, Henning & Datta Gupta, Nabanita & Høgelund, Jan, 2007. "Employment Effects of Educational Measures for Work-Injured People," IZA Discussion Papers 2657, Institute of Labor Economics (IZA).
    4. . Rómulo Chumacero E. & Ricardo Paredes M., 2012. "Centralization, Focalization and Unwanted Consequences: Evaluating Chilean Employment Programs," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 15(1), pages 76-89, April.
    5. Andrén, Daniela & Andrén, Thomas, 2008. "Part-Time Sick Leave as a Treatment Method?," Working Papers in Economics 320, University of Gothenburg, Department of Economics.

    More about this item

    Keywords

    Vocational rehabilitation; long-term sickness; returns to work; Sweden;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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