Cream Skimming in Employment Programmes for the Disabled? Evidence from Sweden

In this paper recruitment practices and incentive structures at the state-owned Samhall company, Sweden's main provider of sheltered employment, are discussed. An econometric analysis is performed on a random sample of 10,000 unemployed individuals, exploring the quality of the data on disability and the determinants of recruitment to the company. The findings regarding recruitment are related to Samhall's objectives.