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Research ArticleArticle

The Effects of Vocational Rehabilitation Services for People with Mental Illness

David Dean, John V. Pepper, Robert Schmidt and Steven Stern
Journal of Human Resources, July 2017, 52 (3) 826-858; DOI: https://doi.org/10.3368/jhr.52.3.0114-6111R1
David Dean
David Dean was an Associate Professorof Economics at the University of Richmond. David died in 2013 following a careerof more than 25 years at the Universityof Richmond where he was a revered teacher, colleague, and friend. David was an early and strong advocate for applying rigorous techniques in estimating the economic impacts of state vocational rehabilitation (VR) programs. His 1987 coauthored article in this journal struck two of his recurring themes—using econometric techniques to address selection issues in service provision and using longitudinal unemployment insurance data to assess long-term employment and earnings impacts. David posthumously received the 2014 W.F. Faulkes Award from the National Rehabilitation Association forcontributions of national importance to increasing knowledge in the field of rehabilitation. John V. Pepper is a Professor of Economics at the University of Virginia. Robert Schmidt is a Professorof Economics at the University of Richmond. Steven Stern is a Professorof Economics at Stony Brook University
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John V. Pepper
David Dean was an Associate Professorof Economics at the University of Richmond. David died in 2013 following a careerof more than 25 years at the Universityof Richmond where he was a revered teacher, colleague, and friend. David was an early and strong advocate for applying rigorous techniques in estimating the economic impacts of state vocational rehabilitation (VR) programs. His 1987 coauthored article in this journal struck two of his recurring themes—using econometric techniques to address selection issues in service provision and using longitudinal unemployment insurance data to assess long-term employment and earnings impacts. David posthumously received the 2014 W.F. Faulkes Award from the National Rehabilitation Association forcontributions of national importance to increasing knowledge in the field of rehabilitation. John V. Pepper is a Professor of Economics at the University of Virginia. Robert Schmidt is a Professorof Economics at the University of Richmond. Steven Stern is a Professorof Economics at Stony Brook University
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Robert Schmidt
David Dean was an Associate Professorof Economics at the University of Richmond. David died in 2013 following a careerof more than 25 years at the Universityof Richmond where he was a revered teacher, colleague, and friend. David was an early and strong advocate for applying rigorous techniques in estimating the economic impacts of state vocational rehabilitation (VR) programs. His 1987 coauthored article in this journal struck two of his recurring themes—using econometric techniques to address selection issues in service provision and using longitudinal unemployment insurance data to assess long-term employment and earnings impacts. David posthumously received the 2014 W.F. Faulkes Award from the National Rehabilitation Association forcontributions of national importance to increasing knowledge in the field of rehabilitation. John V. Pepper is a Professor of Economics at the University of Virginia. Robert Schmidt is a Professorof Economics at the University of Richmond. Steven Stern is a Professorof Economics at Stony Brook University
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Steven Stern
David Dean was an Associate Professorof Economics at the University of Richmond. David died in 2013 following a careerof more than 25 years at the Universityof Richmond where he was a revered teacher, colleague, and friend. David was an early and strong advocate for applying rigorous techniques in estimating the economic impacts of state vocational rehabilitation (VR) programs. His 1987 coauthored article in this journal struck two of his recurring themes—using econometric techniques to address selection issues in service provision and using longitudinal unemployment insurance data to assess long-term employment and earnings impacts. David posthumously received the 2014 W.F. Faulkes Award from the National Rehabilitation Association forcontributions of national importance to increasing knowledge in the field of rehabilitation. John V. Pepper is a Professor of Economics at the University of Virginia. Robert Schmidt is a Professorof Economics at the University of Richmond. Steven Stern is a Professorof Economics at Stony Brook University
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Abstract

We construct a structural model of participation in vocational rehabilitation for people with mental illness. There are multiple services to choose among, and each has different effects on employment, earnings, and receipt of DI/SSI. This is the first paper to jointly estimate VR service receipt, employment outcomes, and DI/SSI receipt. We estimate large effects for most of the services implying large rates of return to vocational rehabilitation.

  • Received January 2014.
  • Accepted May 2016.
  • © 2017 by the Board of Regents of the University of Wisconsin System

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Journal of Human Resources: 52 (3)
Journal of Human Resources
Vol. 52, Issue 3
1 Jul 2017
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The Effects of Vocational Rehabilitation Services for People with Mental Illness
David Dean, John V. Pepper, Robert Schmidt, Steven Stern
Journal of Human Resources Jul 2017, 52 (3) 826-858; DOI: 10.3368/jhr.52.3.0114-6111R1

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The Effects of Vocational Rehabilitation Services for People with Mental Illness
David Dean, John V. Pepper, Robert Schmidt, Steven Stern
Journal of Human Resources Jul 2017, 52 (3) 826-858; DOI: 10.3368/jhr.52.3.0114-6111R1
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