Time Use in Vocational Rehabilitation and Labor Market Outcomes for Transition-Age Youth

Abstract

Transition-age youth with disabilities are a critical population targeted by the United States Vocational Rehabilitation (VR) system, particularly following the Workforce Innovation and Opportunity Act (WIOA). Yet little is known about how these youth allocate their time while participating in VR and how different patterns of participation relate to subsequent labor market outcomes. Using linked administrative records from a state VR agency and unemployment insurance wage data ( $n=5,875$ ), we analyze short-term and long-term employment and earnings in relation to time spent during VR in employment, receiving funded services, and waiting for services. On average, participants spend 11.6 quarters in VR, with 42% of this time in employment, 20% receiving services, and 40% waiting for services. We find that more time spent employed during VR is associated with higher employment rates, shorter unemployment spells, and increased earnings up to 2 years after program exit. Return on investment analysis indicates that program efficiency peaks around seven quarters, after which diminishing returns emerge due to rising opportunity costs, which can be mitigated with work-based learning during VR. These results highlight the importance of integrating work-based learning opportunities into VR to improve long-term employment outcomes and economic returns.