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Employment behaviour of marginal workers

Author

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  • Nordberg, Morten

    (Ragnar Frisch Centre for Economic Research)

Abstract

We use structural estimation techniques to analyze labour supply effects of changes in economic incentives for individuals who have just finished vocational rehabilitation in Norway. The complicated and sometimes non-convex budget sets for this group are accounted for. Focus is also on the limitation in the choice sets this group face. Parametric bootstrap and simulation techniques are applied to construct confidence intervals for the predicted impacts of changes in the economic environment. The results show that there is a small to moderate effect of changes in economic incentives on the extent to which vocational rehabilitation brings individuals back to work. We also find that individual health status and local labour market conditions are the most important factors affecting the transition from rehabilitation to work.

Suggested Citation

  • Nordberg, Morten, 2007. "Employment behaviour of marginal workers," Memorandum 06/2007, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2007_006
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2007/Memo-06-2007.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Structural estimation; labour supply; marginal workers.;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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