Seminar ‘The effect of graded work for sick-listed workers’

Time:                   13:00-14:00 Hrs

Venue:                 CPB-Office, Bezuidenhoutseweg 30, Den Haag, room 1 ‘Duinzaal’

Presentation:  Lieke Kools (UL)         

Discussant:       Rob Euwals

Language:         English

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Abstract:

There is increasing evidence that graded work arrangements are effective tools at getting sick-listed workers back to work, but little is known on the optimal setup of such trajectories. In this paper we look at the effectiveness of different degrees and timing of raded work, using administrative data from a Dutch private workplace reintegration provider. In order to correct for the selection bias inherent to the evaluation of activation strategies, we exploit the discretionary room of the caseworkers in setting up treatment plans. In correspondence with previous literature we find positive effects of graded work on the probability of work resumption. Entering graded work in the first year of a sick spell leads to a 18.3% higher probability to return to work within two years. Graded work is most effective if the caseworker manages to get the individual into a high degree of graded work at some point during the trajectory. The start of the trajectory is of little relevance to the probability to return to work within two years. However, as we find substantive lock-in effects at the start of the graded work trajectory, it pays off to start early.

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