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The article applies a "fixed-effect" methodology to evaluate the training impacts of the Vocational Rehabilitation program. Two central issues are identification of an acceptable comparison group and adjusting for sources of selection-bias. The use of program dropouts as a comparison group is examined with a modified Hausman test. The results suggest spending on VR may be ore cost-effective in view of the high public cost of serving the disabled in a full dependency mode. These estimates of VR training impacts are compared with the performance of CETA, a public program serving the non-disabled which has been examined extensively using the fixed-effect estimator.

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