Econometric Evaluation of a Placement Coaching Program for Recipients of Disability Insurance Benefits in Switzerland

This paper evaluates a placement coaching program carried out in Zurich during 2009–2013 that focused on the reemployment of persons drawing disability insurance (DI) benefits. A private company was commissioned with carrying out the program. Kernel-based matching and radius matching with bias adjustment (Lechner et al. 2011; Huber et al. 2015) estimators combined with difference-in-differences are applied to administrative panel data. The estimates indicate a successful project in terms of a reduction in DI benefits and an increase in income even in the medium-run. A simple cost-benefit analysis suggests that the project was a profitable investment for the government. Sensitivity analyses indicate that the results are robust to confounders. An interesting policy implication is that it seems possible to enhance the employment prospects of disabled persons with a relatively inexpensive placement coaching measure which does not include any explicit investments in human capital.