The Economics of Supported Employment: What We Know, Thought

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Research on
Supported Employment in the
United States
Robert Evert Cimera, Ph.D.
Kent State University
rcimera@kent.edu
Question #1:
The Costs and Benefits of SE
The Costs and Benefits of SE
Workers’ Perspective

Benefits

Wages Earned

Fringe Benefits

Costs

Reduction in
Governmental
Subsidies

Taxes Paid

Forgone Wages
Is SE a Good Investment for Workers?

Benefits (per month):
$623.77
(3,595 NOK)

Costs (per month):
$148.52
(856 NOK)

Benefit-Cost Ratio………………….
4.20
104,213 Supported Employees with Intellectual Disabilities
(2002-2007)
Is SE a Good Investment for Workers?

With Multiple Disabilities:


Benefit-Cost Ratio………………….
4.07
Without Multiple Disabilities:

Benefit-Cost Ratio………………….
231,204 Supported Employees (2002-2007)
4.27
The Costs and Benefits of SE
Taxpayers’ Perspective

Benefits

Costs

Taxes Paid

SE Program costs

Reduction in
Governmental
Subsidies

Reduced taxes due to
employer tax credits.

Savings from
Alternative Program
(Sheltered
Placements)
Is SE a Good Investment for
Taxpayers?

Benefits (per month):
$795.65
(4,577 NOK)

Costs (per month):
$544.31
(3,131 NOK)

Benefit-Cost Ratio………………….
231,204 Supported Employees (2002-2007)
1.46
Benefit-Cost Ratios by Condition

Traumatic Brain Injuries……………… 1.17

Intellectual Disabilities……………….. 1.20

Sensory Impairments………………… 1.35

Autism…………………………………. 1.62

Physical Disabilities………………….. 1.66

Mental Illnesses………………………. 1.68
231,204 Supported Employees (2002-2007)
Costs of Sheltered v Supported
Percent of Total Costs
Total Costs
Sheltered
$19,388
(111,539 NOK)
Source: Cimera (2008) 171 Sheltered & 56 Supported Employees with
Intellectual Disabilities from same adult service agencies
Costs of Sheltered v Supported
Percent of Total Costs
Total Costs
Sheltered
$19,388
Supported
$6,619
(38,079 NOK)
Source: Cimera (2008) 171 Sheltered & 56 Supported Employees with
Intellectual Disabilities from same adult service agencies
Question #2:
Hiring Workers with Disabilities
Hiring Workers with Disabilities

Better return-on-investment hiring SE

Kept their jobs more than 3 times longer

More reliable (i.e., showed up on time)

No increase in worker’s compensation

Average saving to employer:
$780.87
(4,501 NOK)
Cimera (2009). Three supported v. three non-disabled entry-level employees.
Question #3:
Place-Train v. Train-Place
Place-Train v. Train-Place
No Sheltered Settings

Employed

Earnings
60.4%
$137
(788 NOK)

Cost
$4,543
(26,136 NOK)
4,904 individuals with Intellectual Disabilities
Place-Train v. Train-Place
No Sheltered Settings

Employed

Earnings
Sheltered Settings
60.4%

Employed
$137

Earnings
(788 NOK)

Cost
$4,543
59.6%
$119
(685 NOK)

Cost
(26,136 NOK)
42.5% decrease in cost; 15.1% increase in earnings
$7,895
(45,419 NOK)
Summary

Supported Employment is a good
investment for:




The Individual with a disability
The Taxpayer
Employer
Place-Train produces better outcomes
than Train-Place
Takk!
Robert Evert Cimera, Ph.D.
Kent State University
RCIMERA@KENT.EDU
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