The Disabled Wage Gap between Social Enterprises and Capitalist Enterprises

Abstract

Background: In recent years, the disabled wage gap between persons with disabilities (PwD) and those without disabilities (PwoD) has widened considerably. However, one of the prime reasons for creating social enterprise is that they include in their goals employ and include vulnerable groups, but such firms are in favor of PwD in relation to wage or not? The main aim of this article is to analyze whether wage discrimination exists between PwD employed by social enterprises (SE) and those employed by capitalist enterprises (CE).Methods: We used microdata from the Continuous Sample of Work Lives (CSWL) for Spain. In terms of the various statistical and econometric methods employed in the study, we used Pearson’s c2 test, and quantile regression and Oaxaca-Blinder wage decomposition.Results: Although wages for persons with disabilities are lower in social enterprises than in capitalist enterprises, this does not occur in every income distribution percentile. If we also consider employees with similar socio-occupational profiles, SE employees earn more than CE employees. However, the same wage gap exists in PwD employment as it does do in the Spanish labor market in terms of gender, age, level of education, skill level, type of contract, working hours, company size, and sector of activity, both in social and capitalist enterprises.Conclusion: Results of the study showed that not only, therefore, are SE more sensitive in terms of the labor inclusion of disabled people but they also pursue more positive PwD wage discrimination than CE.

Editorial: Emotional and social value of organizations

“…In recent years, however, there has been increasing interest in corporate social responsibility and in integrating both economic and social responsibilities into organizational value. The fostering of the social and solidarity economy (SSE) (Calderón-Milán et al, 2020), the economy based on the common good (Sanchis et al, 2021) and sustainability has exposed the shortcomings of this traditional methodology when it comes to calculating the organizational social value. Due to the fact that financial-economic indicators are still recognized as the main means of determining value, there is often a lack of integration between economic and social aspects, and while there are well-established measurements for corporate economic status, there is currently no standardized method for measuring organizational social value.…”