an article by Simen Markussen and Knut Røed (The Ragnar Frisch Centre for Economic Research, Norway) published in Labour Economics Volume 31 (December 2014)
Abstract
Based on local variations in vocational rehabilitation (VR) priorities, we examine the impacts of alternative VR programs on short- and long-term labor market outcomes for temporary disability insurance (TDI) claimants in Norway.
The analysis builds on rich and detailed administrative registers covering 345,000 claimants.
We find that a strategy focusing on rapid placement in the regular labor market is superior to alternative strategies giving higher priority to vocational training or sheltered employment. Strategies prioritizing subsidized regular education also tend to be relatively successful in terms of final outcomes, but at the cost of protracted periods of benefit dependency first.
JEL classification
C21; C26; H55; I38; J24
Hazel’s comment:
Interesting to note that placing people into sheltered employment is counter-productive to their possibilities of entering the regular labour market.
This conclusion is, however, based on a sample of people with a temporary disability.
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