Scandinavian Working Papers in Economics

SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

No 373: A Microeconometric Evaluation of Rehabilitation of Long-term Sickness in Sweden

Markus Frölich (), Almas Heshmati () and Michael Lechner ()
Additional contact information
Markus Frölich: Swiss Institute for International Economics and Applied Economic Research (SIAW), Postal: University of St. Gallen , Dufourstrasse 48 , CH-9000 St. Gallen , Switzerland
Almas Heshmati: Department of Economic Statistics, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden
Michael Lechner: Swiss Institute for International Economics and Applied Economic Research (SIAW), Postal: University of St. Gallen , Dufourstrasse 48 , CH-9000 St. Gallen , Switzerland

Abstract: In this study the effects of various types of rehabilitation programmes on different labour market and health related outcomes are estimated. The main feature of this study, compared to previous research, is that it jointly evaluates multiple treatments by nonparametric matching estimators. The study is based on a sample of 6287 persons in western Sweden who are long-term sick observed during 1991 to 1994 and could participate in rehabilitation programmes. Our results suggest that work-place training is superior to the other rehabilitation programmes with respect to labour market outcomes. However, no positive effects of rehabilitation compared to non-participation are found.

Keywords: Programme evaluation; matching; multiple treatments; multi-programme causal models; long-term sickness; vocational rehabilitation; Swedish labour markets

JEL-codes: C50; H43; I12; J26; J31

61 pages, First version: March 31, 2000. Revised: June 7, 2000. Earlier revisions: April 3, 2000, April 3, 2000, April 3, 2000, June 6, 2000.

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