Employment effects for people with disabilities after participation in vocational training programmes: A cohort analysis using propensity score matching

Abstract

BACKGROUND: Vocational rehabilitation (VR) aims to help people with disabilities to return to the labour market. Though, there is not much evidence on its effectiveness. OBJECTIVES: We explore the effect of vocational training programmes in VR and the VR status itself on employment outcomes. METHODS: Using two samples from administrative data by the German Federal Employment Agency, we applied propensity score matching. We followed rehabilitants commencing VR in 2009/2010 (N = 7,905) for four years (comparison I) and general training participants with and without VR status completing training in 2012/2013 (N = 21,020) for one year (comparison II). For harmonisation purposes, we only considered individuals aged between 25 and 40 and excluded those in employment at the beginning of VR or training. RESULTS: Concerning the effect of training in VR (comparison I), we observe a lock-in effect during training (p < 0.001) due to an involvement in VR; after training, participants are more likely to obtain unsubsidised employment (0.05, p < 0.05) than non-participants, but there is no statistically significant income difference after four years. Regarding the effect of the VR status (comparison II), rehabilitants are more likely to take up (un-)subsidised employment (0.04, p < 0.01; 0.02, p < 0.001) after training, exhibit longer employment durations (19 days, p < 0.001) and achieve higher average incomes (2,414 euro/year, p < 0.001) compared to non-rehabilitants. CONCLUSIONS: Training participation helps to improve employment participation of rehabilitants. However, a longer observation period is recommended. Furthermore, the VR status itself leads to more sustainable and better-paid employment. This is due to more comprehensive support and longer-term subsidised employment opportunities.