Benefits and Costs of Supported Employment: An Analysis of the Illinois Supported Employment Project

Abstract

This investigation presents a cost-benefit analysis completed for one of 27 states implementing supported employment as a result of federal funding. Based upon the benefits and costs detailed, society realized a $0.75 return for every $1.00 invested in supported employment in Illinois. Supported employees realized a 37% increase in their earnings over a comparable period. The results of this study are discussed and recommendations are made for similar analyses across states.

Can Community-Based High School Transition Programs Improve the Cost-Efficiency of Supported Employment?

“…Although this conclusion is similar to finding of Conley et al (1989), McCaughrin et al (1991, and Rusch et al (1993), it is counter to those reached by other researchers who determined that supported employment was cost-efficient from the taxpayers' perspective Zivolich et al, 1997). The reasons for these contradictory findings most likely involve variations in the accounting methodology used.…”

“…Numerous studies have investigated the monetary costs and benefits of supported employment from the perspective of the taxpayers, workers, and society in general (cf. Baer, Simmons, Flexer, & Smith, 1995;Cimera, 1998;Conley, Rusch, McCaughrin, & Tines, 1989;Hill & Wehman, 1983;Kregel, Wehman, & Banks, 1989;McCaughrin, Rusch, Conley, & Tines, 1991;Noble, Conley, Banjerjee, & Goodman, 1991;Rogers, Sciarappa, MacDonald-Wilson, & Danley, 1995;Wehman et al, 2003). Others have compared the programmatic costs of supported employment to those generated by sheltered workshops (cf.…”

Is Supported Employment Cost-Effective in Minnesota?

“…On the other hand, a study by Lam (1986), wherein sheltered employment was compared with SE, indicates that sheltered (i.e., on-site) employment may be more economically efficient when only monetary benefits and costs are considered. Other recent studies on SE by Conley, Rusch, McCaughrin, and Tines (1989), Conley and Noble (1990), and Noble, Conley, Banerjee, and Goodman (1991) also have reported negative economic benefits resulting from SE. In the latter study it was noted that although the SE programs they examined were not cost-effective during the period under study the programs might become cost-effective at some time in the future.…”

“…Since the mid-sixties, benefit-cost analysis also has been used in large-scale evaluations of federal transitional training programs for the economically disadvantaged (e.g., Long, Mallar, & Thornton, 1981) and for persons with disabilities (e.g., Kerachsky, Thornton, Bloomenthal, Maynard, & Stephens, 1985; Kerachsky & Thornton, 1987;Thornton, Dunstan, & Schore, 1990), and in assessing other demonstration projects which have focused on the training and employment of individuals with disabilities (Hill & Wehman, 1983;Schneider, Martin, & Rusch, 1981). More recently, benefit-cost analysis also has been used in the evaluation of SE services for individuals with severe disabilities in comparisons with other employment and rehabilitative activities (e.g., Conley, Rusch, McCaughrin, & Tines, 1989;Hill, Wehman, Kregel, Banks, & Metzler, 1987;Lam, 1986;Naeve, Allen, Harding, & Shea, 1990;Noble & Conley, 1987;Noble, Conley, Banerjee, & Goodman, 1991), and even in one study directly addressing the prospective benefit-cost effects of school-based special education services (Lewis, Bruininks, Thurlow, & McGrew, 1988). Today, almost all state VR agencies, employ some form of benefit-cost analysis for reporting to legislatures and policymakers on the likely efficiency effects resulting from traditional vocational rehabilitation activities.…”

Economic Evaluation of Supported-Employment Inspired Program for Pupils With Intellectual Disabilities

“…A multitude of economic evaluations of SE programs, comparing these to regular vocational training programs etc., has been conducted in the U.S. (Cimera, 1998(Cimera, , 2010a(Cimera, , 2012Conley et al, 1989;Hill & Wehman, 1983;Hill et al, 1987;Latimer, 2001;Rogers et al, 1995). An early European such study, for Wales, is the one by Beyer and Kilsby (1998).…”