Does sickness absence history affect work participation after vocational labour market training?

Abstract Background Active labour market programmes, such as vocational training, have become widely adopted measures to increase job seekers’ employment opportunities, but evidence of their effectiveness in later employment is mixed. Individuals who enter training differ greatly in their socioeconomic background, health, and labour market history, which can affect the effectiveness of these programmes. There is still uncertainty, for example, on how vocational labour market training works for individuals with prior health problems. Methods We use nationally representative Finnish register data on 88,283 individuals aged 25-59 who participated in vocational labour market training in 2008-2013, 23,715 of whom had sickness absence lasting at least 10 weekdays (including Saturday) three years prior to the training and 64,568 of whom did not. To adjust for the differences in sociodemographic and work-related factors between these groups, we will conduct propensity score matching. We will analyze work participation three years before and after the training among those with sickness absence and those without using a difference-in-difference analysis. Results Our preliminary results show that before training the work participation rate was similar in those with sickness absence history (58.5 %) and those without (58.1 %). After training, those with a sickness absence history had slightly lower work participation than those without (54.6% versus 59.6 %). The differences in work participation between these groups increased slightly over time after training. Conclusions Vocational labour market training does not necessarily work equally well for everyone in terms of enhancing employment, and job seekers with work disability history should be offered either extra support or another type of unemployment service. However, these are our pre-matching results, and they cannot be causally interpreted. Next, we will conduct the propensity score matching and difference-in-difference analysis. Key messages • Having a sickness absence history prior to vocational labour market training is associated with lower work participation after training compared to participants without a sickness absence history. • The main advantage of the study is the use of a quasi-experimental study design to test the effectiveness of vocational training, using rich nationally representative register data with long follow-up.


Background:
Active labour market programmes, such as vocational training, have become widely adopted measures to increase job seekers' employment opportunities, but evidence of their effectiveness in later employment is mixed. Individuals who enter training differ greatly in their socioeconomic background, health, and labour market history, which can affect the effectiveness of these programmes. There is still uncertainty, for example, on how vocational labour market training works for individuals with prior health problems.

Methods:
We use nationally representative Finnish register data on 88,283 individuals aged 25-59 who participated in vocational labour market training in 2008-2013, 23,715 of whom had sickness absence lasting at least 10 weekdays (including Saturday) three years prior to the training and 64,568 of whom did not. To adjust for the differences in sociodemographic and work-related factors between these groups, we will conduct propensity score matching. We will analyze work participation three years before and after the training among those with sickness absence and those without using a difference-in-difference analysis.

Results:
Our preliminary results show that before training the work participation rate was similar in those with sickness absence history (58.5 %) and those without (58.1 %). After training, those with a sickness absence history had slightly lower work participation than those without (54.6% versus 59.6 %). The differences in work participation between these groups increased slightly over time after training.

Conclusions:
Vocational labour market training does not necessarily work equally well for everyone in terms of enhancing employment, and job seekers with work disability history should be offered either extra support or another type of unemployment service. However, these are our pre-matching results, and they cannot be causally interpreted. Next, we will conduct the propensity score matching and difference-in-difference analysis.

Key messages:
Having a sickness absence history prior to vocational labour market training is associated with lower work participation after training compared to participants without a sickness absence history.
The main advantage of the study is the use of a quasiexperimental study design to test the effectiveness of vocational training, using rich nationally representative register data with long follow-up.

Background:
The COVID-19 pandemic entailed a deep economic crisis that affected working populations globally. However, non-standard workers (NSW, understood as workers with temporary contracts, not working full-time, self-employed or not paying taxes/making active pension contributions) were more severely hit than workers with more stable and protected jobs. The aim of this study thus was to explore the experiences of NSW during the pandemic and how these affected their mental health in Spain, one of the countries in Europe with the highest shares of temporary and self-employment and the one that applied the most restrictive containment measures during the first waves of the pandemic.

Methods:
As part of a larger multi-country study, 41 semi-structured interviews with NSW aged 25-55 were conducted between March-July 2021 and analyzed thematically.

Results:
Analyses revealed that job loss or insecurity and subsequent reductions in income were central to the experience of NSW during the pandemic in Spain, which affected their mental health negatively. Both the existing social protection framework and the policies deployed during the pandemic to outweigh these consequences were perceived by NSW as insufficient or could not access them due to their condition of NSW. This was particularly the case for self-employed and temporary agency workers. Moreover, NSW expressed that containment measures and reductions in income prevented them from engaging in activities to cope with such adversities, aggravating their mental health.

Conclusions:
These findings suggest that, in Spain, the pandemic intensified but also made more visible the defenselessness of NSW (especially self-employed and temporary agency workers) in terms of social protection in the event of sudden unemployment or reductions in income. This situation had harmful consequences for their mental health. Yet, new policies and measures fall short in fitting the necessities of an increasing share of the workforce.

Key messages:
In Spain, non-standard workers are more vulnerable to and defenseless against sudden unemployment or reductions in income.
The pandemic intensified this problem and put them at higher risk of suffering from poor mental health.