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This article utilizes administrative data to examine both short- and long-term employment impacts for people with cognitive impairments who applied for vocational rehabilitation services in Virginia in 2000. These data provide long-term quarterly information on services and employment outcomes. We model behavior, allow for multiple service choices,...
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Context 1
... it is worthwhile to perform this exercise since, under this assumption, the di¤erence in estimates between samples (a) and (b) identi…es the real change in service e¤ectiveness over cohorts. The results are displayed in Figure 7. The estimates imply that training became more e¤ective in both the short-and long-run between 1988 and 2000. ...
Context 2
... the one hand, as in these earlier evaluations, we …nd VR services have large positive returns: for cognitively impaired people, the mean long-run bene…ts of over $21000 exceed the mean costs by 4 to 6 times, a factor that is similar to the estimate reported in Wilhelm and Robinson (2010). At the same time, we …nd striking evidence of substantial heterogeneity in the e¢ cacy of VR services across clients (see Figure 8), types of services (see Figure 4), and time periods (see Figure 7). Return on investment analyses ignoring these heterogeneities are nearly certain to present an incomplete and misleading picture of the e¢ cacy of VR services. ...
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Objectives
Individuals with intellectual disabilities (ID) depend on public services for daily support and medical care; however, this group of individuals can be difficult to identify within population data. This therefore limits the opportunities to accurately estimate the size of the population with ID, monitor trends and tailor public health in...
Citations
... Our basic methodological approach extends the analysis in Dean et al. (2015) of the effect of Virginia's VR program on clients who have IDs (also see Dean et al. 2017Dean et al. , 2018Dean et al. , 2019. 4 Dean et al. (2015Dean et al. ( , 2017Dean et al. ( , 2018Dean et al. ( , 2019 analyze the effect of VR services on labor market outcomes by using a structural instrumental variable model and administrative data collected for the RSA (RSA-911 data). To examine the effect of classification biases on the White-Black labor market gaps, we disaggregate the data on Virginia's VR clients who have cognitive impairments into the mutually exclusive and exhaustive sets of individuals who have an ID and individuals who have an LD. ...
... Our basic methodological approach extends the analysis in Dean et al. (2015) of the effect of Virginia's VR program on clients who have IDs (also see Dean et al. 2017Dean et al. , 2018Dean et al. , 2019. 4 Dean et al. (2015Dean et al. ( , 2017Dean et al. ( , 2018Dean et al. ( , 2019 analyze the effect of VR services on labor market outcomes by using a structural instrumental variable model and administrative data collected for the RSA (RSA-911 data). To examine the effect of classification biases on the White-Black labor market gaps, we disaggregate the data on Virginia's VR clients who have cognitive impairments into the mutually exclusive and exhaustive sets of individuals who have an ID and individuals who have an LD. ...
... Our basic methodological approach extends the analysis in Dean et al. (2015) of the effect of Virginia's VR program on clients who have IDs (also see Dean et al. 2017Dean et al. , 2018Dean et al. , 2019. 4 Dean et al. (2015Dean et al. ( , 2017Dean et al. ( , 2018Dean et al. ( , 2019 analyze the effect of VR services on labor market outcomes by using a structural instrumental variable model and administrative data collected for the RSA (RSA-911 data). To examine the effect of classification biases on the White-Black labor market gaps, we disaggregate the data on Virginia's VR clients who have cognitive impairments into the mutually exclusive and exhaustive sets of individuals who have an ID and individuals who have an LD. ...
... After controlling for regional-and individual-level confounders, residual variation in language training intensity reflects the policy styles of job centers. Several studies have exploited regional variation in the policy styles of employment agencies and partly used an instrumental variable approach to analyze the effects of several labor market programs (Frölich and Lechner 2010;Lechner et al. 2013;Markussen and Røed 2014;Boockmann et al. 2014;Dean et al. 2015;Caliendo et al. 2017;Eppel 2017;Dauth 2020). Following this approach, I identify causal effects by addressing selection into the studied program based on unobservable characteristics. ...
Proficiency in the host country’s language is an important factor for the successful labor market integration of immigrants. In this study, I analyze the effects of a language training program for professional purposes on the employment opportunities of participants in Germany. I apply an instrumental variable approach and exploit differences in lagged local training intensities. Bivariate probit estimates show that 2 years after the program started, the employment probability of immigrants who were unemployed in 2014 and participated in the program had increased by more than nine percentage points as a result of language training.
... However, whereas systematic evidence shows how interventions implemented at the workplace impact employment outcomes [5][6][7][8][9][10][11][12], there is less conclusive evidence on the effects of (out-of-job) retraining measures. Some empirical studies indicate a positive effect on income and employment [13][14][15][16][17] while other authors find little or no effects resulting from program participation [18,19]. Interpreting these findings is complicated by differences in study populations, methods used and in the vocational education measures analysed, which may have different mandates, strategies and curricula. ...
Purpose To investigate how completing vocational re-training influenced income and employment days of working-age people with disabilities in the first 8 years after program admission. The investigation also included the influence of vocational re-training on the likelihood of receiving an earnings incapacity pension and on social security benefit receipt. Methods This retrospective cohort study with 8 years follow up was based on data from 2399 individuals who had completed either a 1-year vocational re-training program (n = 278), or a 2-year vocational re-training program (n = 1754) or who were admitted into re-training but never completed the program (n = 367). A propensity score-based method was used to account for observed differences and establish comparability between program graduates and program dropouts. Changes in outcomes were examined using the inverse probability-weighted regression adjustment method. Results After controlling for other factors, over the 8 years after program admission, graduates of 1-year re-training, on average, were employed for an additional 405 days, 95% CI [249 days, 561 days], and had earned €24,260 more than without completed re-training, 95% CI [€12,805, €35,715]. Two-year program completers, on average, were employed for 441 additional days, 95% CI [349 days, 534 days], and had earned €35,972 more than without completed re-training, 95% CI [€27,743, €44,202]. The programs also significantly reduced the number of days on social-security and unemployment benefits and lowered the likelihood of an earnings incapacity pension. Conclusion Policies to promote the labor market re-integration of persons with disabilities should consider that vocational re-training may be an effective tool for sustainably improving work participation outcomes.
... The descriptive results from this article suggest that accounting for cross-state heterogeneity in client characteristics, services, and agency structure will be critical in order to draw credible inferences on the effect of vocational rehabilitation on labor market outcomes for people with visual impairments. Dean et al. (2015Dean et al. ( , 2017Dean et al. ( , 2018 and Schmidt et al. (2019) provided a modeling strategy that might be used to estimate the ROI for vocational rehabilitation for clients with visual impairments. Clapp et al. (2019) discussed the difficulties with performing a credible ROI analysis that provides causal effects of vocational rehabilitation services. ...
... As described previously, the literature evaluating vocational rehabilitation clients with visual impairments documented significant associations between employment and a wide range of demographic, health, and vocational rehabilitation agency-specific measures. More generally, the labor economics literature (e.g., Aakvik et al., 2005;Baldwin, 1999;Dean et al., 2015Dean et al., , 2017Dean et al., , 2018andStern, 1989, 1996) found a set of similar explanatory variables (e.g., demographics, education, health) that almost always has a significant effect on both employment and quarterly earnings. Most of the variables identified in these literatures are included in our data. ...
... A final explanatory variable is a pre-2007 employment indicator. Preservice employment and earnings played a critical role in the Dean et al. (2015Dean et al. ( , 2017Dean et al. ( , 2018 and Schmidt et al. (2019) ROI evaluations of vocational rehabilitation programs for clients with other impairments. The fraction of clients employed in at least one-quarter preapplication is similar for clients in all three states at around 52%. ...
Introduction
This study describes the characteristics of, services received by, and labor market outcomes of applicants with visual impairments to three state vocational rehabilitation programs. Our objective is to both document cross-state variation in vocational rehabilitation clientele and services and provide new insights on the longitudinal labor market outcomes of clients with visual impairments (i.e., blindness or low vision). This analysis is a first step in assessing the returns to vocational rehabilitation services for this population.
Methods
We first created a unique longitudinal data set by matching administrative records on applicants who are visually impaired in state fiscal year 2007 from three vocational rehabilitation agencies to 8 years of employment data from state Unemployment Insurance programs. Using these data, we examined cross-state variation in the descriptive statistics for important client explanatory variables and vocational rehabilitation service categories. We then compared the long-term labor market outcomes of clients receiving services (treated) to untreated individuals.
Results
We documented two important findings. First, there were substantial differences in client characteristics, services provided, and costs across the three states. Second, the long-run labor market analysis was consistent with vocational rehabilitation services having no employment effect but a positive earnings effect.
Discussion
Labor market results indicate vocational rehabilitation services provided persistent earnings benefits. Yet the substantial cross-state heterogeneity suggests these labor market results might not be generalizable and should be interpreted with caution. We explain what was missing from this analysis and why the results should not be thought of as causal.
Implications for Practitioners
This article gives practitioners a sense of a unique new data set on vocational rehabilitation and labor market variables for applicants with visual impairments. We highlight the importance of cross-state variation and linking vocational rehabilitation data to long-term employment measures. The question of how best to inform the efficacy of different vocational rehabilitation strategies for clients with visual impairments is left for future researchers to consider.
... Instrumenting with Policy Styles Regional variation in employment offices' policy styles has been exploited to evaluate ALMP instruments in recent studies (Frölich and Lechner 2010;Lechner, Wunsch, and Scioch 2013;Boockmann, Thomsen, and Walter 2014;Markussen and Roed 2014;Dean, Pepper, Schmidt, and Stern 2015;Eppel 2017). In this study, agency-specific policy styles reflect the part of the program implementation that is solely due to local employment agencies' unique features, which are independent from structural or economic specifics. ...
The author analyzes the effects of further training subsidies for low-skilled employees on individual labor market outcomes in Germany. Using detailed administrative data, the author exploits cross-regional variation in the policy styles of local employment agencies to identify causal effects of program participation. Findings show that training subsidies significantly increase cumulative employment duration and earnings in the short run and middle run for compliers, that is, those workers who additionally participate due to a more generous policy style in their agency. These gains are particularly pronounced for certain subgroups, such as women. A rough cost-benefit analysis, however, suggests that the program overall is not beneficial for the public budget.
... En effet, le PPS a connu une diffusion progressive et hétérogène selon les territoires Paerpa avec l'implication variée des médecins généralistes dans cette démarche. L'utilisation de la diffusion du traitement pour identifier l'impact d'un programme est une stratégie déjà employée dans la littérature, par exemple, pour analyser l'impact de nouveaux traitements médicamenteux (Duggan, 2005) ou pour l'impact d'un retour progressif dans l'emploi (Dean et al., 2015 ;Kools et Koning, 2018 ;Markussen et Roed, 2014). Nous proposons ici une adaptation de cette méthode en créant un score de diffusion du traitement auprès des médecins généralistes au niveau communal et non directement au niveau du médecin généraliste qui suit la personne âgée pour éviter le biais dans la sélection du médecin par le patient. ...
Assurer une prise en charge sanitaire et sociale adaptée aux besoins des personnes âgées est un enjeu majeur des politiques publiques. Dans le cadre des expéri-mentations Parcours santé des aînés (Paerpa), lancées en 2014 pour améliorer la prise en charge des personnes âgées en « risque de perte d’autonomie », un outil de coordination, le Plan personnalisé de santé (PPS), a été proposé. Le PPS est un outil innovant qui a pour objectif d’améliorer la coordination et la continuité des prises en charge sanitaires et sociales, et ainsi de prévenir la perte d’autonomie, d'éviter le recours inapproprié à l’hospitalisation et la polymédication. Notre étude vise à évaluer l’impact de la réalisa-tion d’un PPS sur les parcours de soins en observant l’évolution de la consommation de soins et de la qualité de prise en charge des personnes âgées qui en bénéficient.L’évaluation est réalisée à partir des données de consommation inter-régime de l’As-surance maladie appariées aux bases de données hospitalières de 2014 à 2017. Nous développons une analyse en doubles différences après appariement afin de mesurer la différence d’évolution entre les traités et les témoins, avant et après la réalisation du PPS. Afin de s’affranchir du biais de sélection pouvant persister à cause du manque de données sociales et d’état de santé dans les bases de données dont nous disposons, nous introduisons dans l’analyse un instrument qui exploite les différences de diffusion du PPS auprès des médecins généralistes entre les communes des territoires Paerpa. Nos résultats montrent que les personnes âgées qui ont bénéficié du PPS ont des besoins complexes, nécessitant une prise en charge sanitaire et médico-sociale. On observe un impact direct du PPS sur les dépenses d’infirmières à domicile qui augmentent significa-tivement dans la première année suivant le PPS, sans se traduire par une augmentation des dépenses globales en ville, puisqu'il s'accompagne d'une réduction des dépenses de soins de généralistes et de médicaments. En revanche, on ne constate aucun effet significatif du PPS sur les hospitalisations évitables, la polymédication et le recours aux urgences. Au regard de nos résultats et des remontées des informations des territoires pilotes, le PPS semble être un outil mobilisé par les professionnels de santé de premier recours pour enclencher une prise en charge médico-sociale et sociale au domicile de la per-sonne. Mais pour assurer la qualité et la continuité de la prise en charge globale, il serait important de créer des passerelles plus formalisées avec les médecins spécialistes et les acteurs hospitaliers.
... However, due to creamskimming individuals with unfavorable employment prospects were infrequently selected into the measure. For a subgroup of workers with cognitive impairments in the state of Virginia, Dean et al. [13] were able to evaluate the effects of multiple services of VR using an instrumental variable approach. They found large positive long-run (3-9 years) effects on employment and earnings. ...
Purpose During 2009‒2013 a pilot project was carried out in Zurich which aimed to increase the income of disability insurance (DI) benefit recipients in order to reduce their entitlement to DI benefits. The project consisted of placement coaching carried out by a private company that specialized in this field. It was exceptional with respect to three aspects: firstly, it did not include any formal training and/or medical aid; secondly, the coaches did not have the possibility of providing additional financial incentives or sanctioning lack of effort; and thirdly due to performance bonuses, the company not only had incentives to bring the participants into (higher paid) work, but also to keep them there for 52 weeks. This paper estimates the medium-run effects of the pilot project and assesses the net benefit from the Swiss social security system. Methods Different propensity score matching estimators are applied to administrative longitudinal data in order to construct suitable control groups. Results The estimates indicate a reduction in DI benefits and an increase in income even in the medium-run. A simple cost–benefit analysis suggests that the pilot project was a profitable investment for the social security system. Conclusion Given a healthy labor market, it seems possible to enhance the employment prospects of disabled persons with a relatively inexpensive intervention, which does not include any explicit investments in human capital.
... 3 While the short-run impacts of transitioning youth programs are certainly important, there are good reasons to think that the shortand long-run e¤ects may di¤er. Long-run evaluations of intensive employment training for other at-risk populations -similar in many respects to the human capital development services provided transitioning youth with disabilities -imply di¤erent and, in some cases, much greater employment impacts in the period four to six years after assignment than in the initial three-year study period (Couch, 1992;Friedlander and Burtless, 1995;Hotz et al., 2006;Dean et al., 2015Dean et al., , 2017Dean et al., , 2018. This is especially true for transitioning youth where there is "considerable uncertainty about the persistence of training e¤ects" (Hotz et al., 2006). ...
... As such, PERT participation enters the model in three distinct ways: a direct e¤ect on employment and earnings, an indirect interaction e¤ect with schooling, and an indirect interaction e¤ect with VR services provided by DARS. To do this, we incorporate PERT in a modi…ed version of the Dean et al. (2015Dean et al. ( , 2017Dean et al. ( , 2018) multivariate discrete choice model where VR services are endogenously selected and allowed to have a direct e¤ect on labor market outcomes. Importantly, this structural approach allows us to account for the complex interactions between PERT, schooling and VR, to model the endogenous selection of VR and PERT services, and to fully assess counterfactual scenarios. ...
... This "slot constraint" is associated with the PERT participation probability but arguably uncorrelated with unobserved labor market factors. In addition, following Doyle (2007), Maestas et al. (2013), and Dean et al. (2015Dean et al. ( , 2017Dean et al. ( , 2018, we instrument for VR service provision using the propensity of an individual's VR counselor and …eld o¢ ce to assign clients to services. As discussed below, these counselor/…eld o¢ ce variables are related to VR service provision but have no direct e¤ect on labor market outcomes. ...
The process of “transitioning” to adulthood for youth with disabilities has long been recognized to be an important but understudied public policy concern. This paper evaluates the labor market effects of Virginia's school-to-work vocational evaluation program, PERT. Using a unique panel data set containing more than a decade of labor market and service information, we provide the first-ever assessment of the long-term employment impacts of a transitioning program for youth with disabilities. Overall, the estimated effects are substantial: PERT has an estimated median quarterly rate of return of nearly 30%.
... We …ll this void by evaluating the impact of VR services on labor market outcomes of adults with physical disabilities who applied for services in Virginia. This work complements our previous evaluations of the impact of VR on persons with mental illness and cognitive disabilities (Dean et al., 2015(Dean et al., , 2017. Extending the approach developed in Dean et al. (2015Dean et al. ( , 2017, we use detailed panel data on all persons who applied to receive VR services from the Virginia Department of Aging and Rehabilitation Services (DARS) in State Fiscal Year 2000. 1 With quarterly employment and earnings data from 1995 to 2008, we observe labor market outcomes prior to, during, and after service receipt. ...
... This work complements our previous evaluations of the impact of VR on persons with mental illness and cognitive disabilities (Dean et al., 2015(Dean et al., , 2017. Extending the approach developed in Dean et al. (2015Dean et al. ( , 2017, we use detailed panel data on all persons who applied to receive VR services from the Virginia Department of Aging and Rehabilitation Services (DARS) in State Fiscal Year 2000. 1 With quarterly employment and earnings data from 1995 to 2008, we observe labor market outcomes prior to, during, and after service receipt. ...
... As in Dean et al. (2015;2017), we aggregate VR services into six types -diagnosis and evaluation, training, education, restoration, maintenance, and other services -and allow these six services to have di¤erent labor market e¤ects. To do this, we estimate a multivariate discrete choice model of service provision and labor market outcomes. ...
We evaluate the impact of vocational rehabilitation (VR) services on employment outcomes of adults with physical disabilities. Using detailed panel data from the Virginia Department of Aging and Rehabilitation Services in state fiscal year 2000, we estimate a structural model of participation that accounts for the potentially sudden onset of physical impairments and the endogenous selection of VR services. The results imply that VR services have large, positive long-run labor market effects that substantially exceed the cost of providing services.
... The covariance matrix implied by this error structure is presented in Appendix 8.1. See Dean et al. (2015a) for a similar structure applied to people with cognitive impairments. ...
... then those people who had service spells prior to SFY 2000 will have unobservable characteristics di¤erent than those whose …rst spell is in SFY 2000. Dean et al. (2015a) …nd signi…cant left-censoring biases for a sample of people with cognitive impairments. 10 ...
... Likewise, we reject these same nulls applied to counselors. 19 The fact that there is signi…cant variation in the provision of services across o¢ ces and counselors make our instrument viable. Whether these instruments satisfy other identi…cation restrictions is evaluated in Section 4.2. ...
We construct a structural model of participation in vocational rehabilitation for people with mental illness. There are multiple services to choose among, and each has different effects on employment, earnings, and receipt of DI/SSI. This is the first paper to jointly estimate VR service receipt, employment outcomes, and DI/SSI receipt. We estimate large effects for most of the services implying large rates of return to vocational rehabilitation. © 2017 by the Board of Regents of the University ofWisconsin System.
