The Effects of Vocational Rehabilitation Services for People with Mental Illness

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.