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Employment behaviour of marginal workers
By Nordberg, Morten
Memorandum 6/2007
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Abstract |
We use structural estimation techniques to analyze labour supply effects of changes in
economic incentives for individuals who have just finished vocational rehabilitation in
Norway. The complicated and sometimes non-convex budget sets for this group are
accounted for. Focus is also on the limitation in the choice sets this group face.
Parametric bootstrap and simulation techniques are applied to construct confidence
intervals for the predicted impacts of changes in the economic environment. The results
show that there is a small to moderate effect of changes in economic incentives on the
extent to which vocational rehabilitation brings individuals back to work. We also find
that individual health status and local labour market conditions are the most important
factors affecting the transition from rehabilitation to work. |
| JEL Classification:
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J22, C51, H21, H55 |
| Keywords:
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Structural estimation, labour supply, marginal workers |
| Financing:
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Norwegian Research Council, Economic Research Programme on Taxation |
| Contact:
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morten.nordberg@frisch.uio.no |
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[Full Text PDF]
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