Employment Effects of Educational Measures for Work-Injured People

32 Pages Posted: 13 Mar 2007

See all articles by Henning Bach

Henning Bach

Danish National Institute of Social Research (SFI)

Nabanita Datta Gupta

Department of Economics and Business, Aarhus University; IZA Institute of Labor Economics

Jan Høgelund

Danish National Institute of Social Research (SFI)

Date Written: March 2007

Abstract

Vocational rehabilitation in the form of education is the cornerstone of governmental rehabilitation programs for the work-disabled in many countries. Merging a 2004 Danish survey to register information from the Danish National Board of Industrial Injuries, we assess the employment effects of educational measures for the work-injured, by simultaneously estimating the hazard rate to education and the return to work, controlling for unobserved heterogeneity and the endogeneity of education. In addition, we allow for any enhanced employment effects of a unique wage subsidy program in Denmark, giving employers a partial wage subsidy for disabled workers' wages, by distinguishing between education effects of a return to wage-subsidized work versus a return to ordinary work. Unlike previous studies, we find a positive impact of educational measures on the probability of returning to work for the work injured and a stronger effect for a return to wage-subsidized employment compared to a return to ordinary employment.

Keywords: work injury, return to work, education

JEL Classification: C41, J24, J28

Suggested Citation

Bach, Henning and Datta Gupta, Nabanita and Høgelund, Jan, Employment Effects of Educational Measures for Work-Injured People (March 2007). IZA Discussion Paper No. 2657, Available at SSRN: https://ssrn.com/abstract=970508 or http://dx.doi.org/10.2139/ssrn.970508

Henning Bach

Danish National Institute of Social Research (SFI) ( email )

Herluf Trolles Gade 11
DK-1052
Copenhagen K, DK-1052
Denmark

Nabanita Datta Gupta (Contact Author)

Department of Economics and Business, Aarhus University ( email )

Fuglesangs Allé 4
8210 Aarhus V
Denmark
+45 87165207 (Phone)

HOME PAGE: http://pure.au.dk/portal/da/ndg@econ.au.dk

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Jan Høgelund

Danish National Institute of Social Research (SFI) ( email )

Herluf Trolles Gade 11
DK-1052
Copenhagen K, DK-1052
Denmark

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