Short Title:International Economic Review
Year, Volume, Issue, Page(s):15, 56, 2, 399-426
Article utilizes administrative data to examine both short- and long-term employment impacts for people with cognitive impairments who applied for vocational rehabilitation (VR) services in Virginia in 1988 and 2000. These data provide long-term quarterly information on VR services and employment outcomes before and after the provision of services. The authors model the behavior of service provision and labor market outcomes, allow for multiple service choices, use long-run labor market data, and use valid instruments. The results imply that services generally have positive long-run labor market outcome effects that appear to substantially exceed the cost of providing services.