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Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden
Institution:1. Institute for Evaluation of Labour Market and Education Policy (IFAU), Sweden;2. Department of Economics, Stockholm University and Institute for Evaluation of Labour Market and Education Policy (IFAU), Sweden;1. Faculty of Economics and Business, University of Groningen, P.O. Box 800, 9700AV, The Netherlands;2. Tinbergen Institute, The Netherlands;1. College of Civil Engineering, Tongji University, Shanghai 200092, China;2. Key Laboratory of Performance Evolution and Control for Engineering Structures (Tongji University), Ministry of Education, China;1. Friedrich-Alexander-University of Erlangen-Nuremberg, School of Business and Economics, Chair of Health Care Management, Lange Gasse 20, 90403 Nuremberg, Germany;2. Department of Information and Communication, Faculty for Media, Information and Design, University of Applied Sciences and Arts, Expo Plaza 12, 30539 Hannover, Germany;1. Department of Political Science, Simon Fraser University, 8888 University Drive, Burnaby, BC V5A 1S6, Canada;2. School of Politics and International Relations, University of Nottingham, University Park, Nottingham NG7 2RD, United Kingdom
Abstract:This paper analyses if privatisation of vocational rehabilitation can improve labour market opportunities for individuals on long-term sickness absence. We use a field experiment performed by the Public Employment Service and the Social Insurance Agency in Sweden during 2008–2010, in which over 4000 participants were randomly offered private and public rehabilitation. We find no differences in employment rates following rehabilitation between individuals who received rehabilitation by private and public providers. Also the average cost of rehabilitation was essentially equal for the two types of providers. This suggests that there are no large efficiency gains from privatising vocational rehabilitation.
Keywords:Vocational rehabilitation  Privatisation  Field experiment
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