Disability employment initiatives: review of recent evidence from Denmark and Sweden
This review has been carried out in response to the aims of the Fair Work Action Plan and associated evidence plan. It looks to examine the evidence surrounding the promotion of disability employment in Active Labour Market Policies (ALMPs) in Denmark and Sweden.
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4. Common Findings
Literature identified in the review and summarised in the previous sections described a number of success factors of both Denmark and Sweden in implementing ALMPs targeting disability employment. These include:
- Systematic data exchange and built-in evaluation mechanisms;
- Wage subsidy programmes which are effective in the short to medium term;
- Employer engagement and support; and,
- For Denmark, formal involvement from organisations representing employers and workers to ensure policy aligns to the needs of both, and local delegation of ALMPs enabling tailored solutions which enhance effectiveness.
The literature identified also indicated some common challenges associated with the implementation of ALMPs in both Denmark and Sweden. These included:
- Long term effectiveness of wage subsidies and risk of a ‘lock-in’ effect where people do not transition to unsubsidised employment;
- Employer reluctance and perceptions regarding hiring disabled workers; and,
- Staying in employment once starting a job.