State vocational rehabilitation programs and federal disability insurance: an analysis of Virginia’s vocational rehabilitation program

Abstract

We examine the association between the receipt of vocational rehabilitation (VR) services and Federal Disability Insurance using a unique panel data source on persons who applied for assistance from Virginia’s VR program in 2000. Three central findings emerge: first, VR services are associated with lower rates of participation in disability insurance programs-a nearly 2 point drop in SSDI receipt and 1 point drop in SSI receipt. Second, VR service receipt is associated with lower take-up rates of SSDI/SSI. Finally, among VR applicants on SSDI/SSI, those who receive substantive VR services are more likely to be employed. JEL codes: H51, I13, J24