Does Privatization of Vocational Rehabilitation Improve Labor Market Opportunities? Evidence from a Field Experiment in Sweden

Lisa Laun and Peter Skogman Thoursie ()

No 2012:13, Research Papers in Economics from Stockholm University, Department of Economics

Abstract: This paper analyzes if privatization of vocational rehabilitation can improve labor market opportunities for individuals on long-term sickness absence. We use a field experiment performed by the Employment Service and the Social Insurance Agency in Sweden during 2008 to 2010, in which over 4,000 participants were randomly o ffered private and public rehabilitation. We find no diff erences 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 privatizing vocational rehabilitation.

Keywords: Vocational rehabilitation; Privatization; Field experiment (search for similar items in EconPapers)
JEL-codes: J14 J68 L33 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2012-10-29
New Economics Papers: this item is included in nep-exp
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Published as Laun, Lisa and Peter Skogman Thoursie, 'Does Privatization of Vocational Rehabilitation Improve Labor Market Opportunities? Evidence from a Field Experiment in Sweden' in Journal of Health Economics,, 2014, pages 59-72.

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Related works:
Journal Article: Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden (2014)
Working Paper: Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sunrpe:2012_0013

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