Employment behaviour of marginal workers
Link to article:
Authors:
Nordberg, Morten
Year:
2007
Reference:
Memorandum
Number in series: 6
Summary
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:
J22, C51, H21, H55
Keywords:
Structural estimation, labour supply, marginal workers
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.:
Frisch prosjekt: 1142 - Income tax, equality and efficiency
Contact:
morten.nordberg@frisch.uio.no
Financing:
Norwegian Research Council, Economic Research Programme on Taxation
