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Estimating the impact of successful completion of vocational education on employment outcomes
(2019)
In this thesis, unique administrative data, a relevant time of follow-up and advanced statistical measures to handle confounding have been utilized in order to provide new and informative evidence on the effects of vocational rehabilitation programs on work participation outcomes in Germany. While re-affirming the important role of micro-level determinants, the present study provides an extensive example of the individual and fiscal effects that are possible through meaningful vocational rehabilitation measures. The analysis showed that the principal objective, namely, to improve participation in employment, was generally achieved. Contrary to the common misconception that “off-the-job training” is relatively ineffective, this thesis has provided an empirical example of the positive impact of the programs.
Purpose To investigate how completing vocational re-training influenced income and employment days of working-age people with disabilities in the first 8 years after program admission. The investigation also included the influence of vocational re-training on the likelihood of receiving an earnings incapacity pension and on social security benefit receipt. Methods This retrospective cohort study with 8 years follow up was based on data from 2399 individuals who had completed either a 1-year vocational re-training program (n = 278), or a 2-year vocational re-training program (n = 1754) or who were admitted into re-training but never completed the program (n = 367). A propensity score-based method was used to account for observed differences and establish comparability between program graduates and program dropouts. Changes in outcomes were examined using the inverse probability-weighted regression adjustment method. Results After controlling for other factors, over the 8 years after program admission, graduates of 1-year re-training, on average, were employed for an additional 405 days, 95% CI [249 days, 561 days], and had earned €24,260 more than without completed re-training, 95% CI [€12,805, €35,715]. Two-year program completers, on average, were employed for 441 additional days, 95% CI [349 days, 534 days], and had earned €35,972 more than without completed re-training, 95% CI [€27,743, €44,202]. The programs also significantly reduced the number of days on social-security and unemployment benefits and lowered the likelihood of an earnings incapacity pension. Conclusion Policies to promote the labor market re-integration of persons with disabilities should consider that vocational re-training may be an effective tool for sustainably improving work participation outcomes.