Employment behaviour of marginal workers

Morten Nordberg ()
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Morten Nordberg: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21 , N-0349 Oslo, Norway

No 06/2007, Memorandum from Oslo University, Department of Economics

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.

Keywords: Structural estimation; labour supply; marginal workers. (search for similar items in EconPapers)
JEL-codes: C51 H21 H55 J22 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2007-03-01
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:2007_006

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