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This article utilizes administrative data to examine both short- and long-term employment impacts for people with cognitive impairments who applied for vocational rehabilitation services in Virginia in 2000. These data provide long-term quarterly information on services and employment outcomes. We model behavior, allow for multiple service choices, use long-run labor market data, and use valid instruments. Results imply that services generally have positive long-run labor market outcome effects that appear to substantially exceed the cost of providing services.
Based on local variations in vocational rehabilitation (VR) priorities, we examine the impacts of alternative VR programs on short- and long-term labor market outcomes for temporary disability insurance (TDI) claimants in Norway. The analysis builds on rich and detailed administrative registers covering 345,000 claimants. We find that a strategy focusing on rapid placement in the regular labor market is superior to alternative strategies giving higher priority to vocational training or sheltered employment. Strategies prioritizing subsidized regular education also tend to be relatively successful in terms of final outcomes, but at the cost of protracted periods of benefit dependency first.