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Integrated Employment: The Return on Investment, Cost-Effectiveness, and Fiscal
Impact on Workers with Disabilities
Robert Evert Cimera, Ph.D.Kent State University
Disclaimer
I am by no means suggesting that money is the bottom line for any policy decisions.
Disclaimer
I am by no means suggesting that money is the bottom line for any policy decisions.
However…“Economics is the language of politicians and
policymakers….”
Question #1: “Should People Go Into Supported Employment?”
Question #1: “Should People Go Into Supported Employment?”
Benefits: Wages Earned in the Community
Costs: Forgone Wages from a Workshop Taxes Paid Lost Governmental Subsidies
Question #1: “Should People Go Into Supported Employment?”
Individuals with Intellectual Disabilities (n=64,692) Benefit-Cost Ratio = 4.20
Source: Cimera (2010b)
Question #1: “Should People Go Into Supported Employment?”
Individuals with Intellectual Disabilities (n=64,692) Benefit-Cost Ratio = 4.20
Individuals with Autism Spectrum Disorder (n=19,436) Benefit-Cost Ratio = 5.28
Source: Cimera & Burgess (2011)
Question #1: “Should People Go Into Supported Employment?”
Supported Employment was cost-efficient from the worker’s perspective All disabilities, Secondary conditions, and All States.
Source: Cimera (in press)
Question #1: “Should People Go Into Supported Employment?”
Yes….
Question #2: “Which is More Cost-Effective: SE or SW?”
Supported v. Sheltered Employment
Cumulative Costs SE: $18,813SW: $46,855
Source: Cimera (2011b)
Supported v. Sheltered Employment
Cumulative Costs SE: $18,813SW: $46,855
Cost per Hr. Worked SE: $11.88
SW: $17.12
Source: Cimera (2011b)
Supported v. Sheltered Employment
Cumulative Costs SE: $18,813SW: $46,855
Cost per Hr. Worked SE: $11.88
SW: $17.12
Cost per Dollar Earned SE: $2.02SW: $9.39
Source: Cimera (2011b)
Percent of Total Program CostsSupported Employees
0%
2%
4%
6%
8%
10%
12%
14%
1 2 3 4 5 6 7 8 9 10 11 12
Fiscal Quarters
SupportedEmployees
Source: Cimera (2008)
Percent of Total Program Costs
0%
2%
4%
6%
8%
10%
12%
14%
1 2 3 4 5 6 7 8 9 10 11 12
Fiscal Quarters
ShelteredEmployees
SupportedEmployees
Source: Cimera (2008)
Question #2: “Which is More Cost-Effective: SE or SW?”
It appears, SE is more cost-effective.
Source: Cimera (in press)
Question #3: “Is SE a Good Investment for Taxpayers?”
Question #3: “Is SE a Good Investment for Taxpayers?”
Benefits (per month): $795.65 Alternative Program Savings………
$731.64 Taxes Paid………………………….. $
70.84 Reduction in Subsidies…………….($ 6.83)
Costs (per month): $544.31 Cost of SE Services………………..
$394.31 Tax Credits to Employers………….
$150.00
231,204 Supported Employees (2002-2007) Source: Cimera (2010a)
Question #3: “Is SE a Good Investment for Taxpayers?”
Benefit-Cost Ratio = 1.46 Mental Illnesses = 1.68 Physical Disabilities = 1.66 Autism Spectrum Disorder = 1.62 Sensory Impairments = 1.35 Intellectual Disabilities = 1.20 Traumatic Brain Injuries = 1.17
Source: Cimera (2009)
Question #3: “Is SE a Good Investment for Taxpayers?”
Yes…regardless of disability or number of disabilities (but not in all States).
Source: Cimera (2009)
Question #4: “How Do We Make SE More Effective and Efficient?”
The Utilization of “Natural Supports”
SE with “Natural Supports”Average Cost = $5,063Employment Cycle = 6.04 fiscal quartersCost per Quarter = $838
SE StatewideAverage Cost = $8,212Employment Cycle = 3.36 fiscal quartersCost per Quarter = $2,444
Source: Cimera (2007)
The Utilization of “Natural Supports”
SE with “Natural Supports”
Reduced costs by 57.6% (from 2001 to 2005)
Nearly an 80% increase in length of employment.
Source: Cimera (2007)
Community-Based Transition Services
In-SchoolCost of Services = $1,551
Months Employed = 4.70
Community-BasedCost of Services = $1,020
Months Employed = 8.10
Source: Cimera (2010c)
Sheltered Workshops Prior to SENo Sheltered Workshop
Wkly Earnings: $137.20
Cost (sample): $4,543*
Cost (employed): $5,399*
Yes Sheltered Workshop
Wkly Earnings: $118.55
Cost (sample): $7,895
Cost (employed): $8,659
9,808 Individuals with Intellectual Impairments Source: Cimera (2011a)
ReferencesCimera, R.E. (2007). Utilizing natural supports to reduce the costs of supported employment. Research and Practice for Persons with Severe Disabilities, 32(3), 1-6.
Cimera, R.E. (2008). The cost-trends of supported versus sheltered employment. Journal of Vocational Rehabilitation, 28, 15-20.
Cimera, R.E. (2009). Supported employment’s cost-efficiency to taxpayers: 2002 to 2007. Research and Practice for Persons with Severe Disabilities, 34, 13-20.
Cimera, R.E. (2010a). The national cost-efficiency of supported employees with intellectual disabilities: 2002 to 2007. American Journal on Intellectual and Developmental Disabilities, 115, 19-29.
Cimera, R.E. (2010b). The national cost-efficiency of supported employees with intellectual disabilities: The worker’s perspective. Journal of Vocational Rehabilitation, 33, 123-131.
Cimera, R.E. (2010c). Can community-based high school transition programs improve the cost-efficiency of supported employment? Career Development for Exceptional Individuals, 33(1) 4-12.
Cimera, R.E. (2011a). Does being in sheltered workshops improve the employment outcomes of supported employees with intellectual disabilities? Journal of Vocational Rehabilitation, 35, 21-28. Cimera, R. E. (2011b). Supported versus sheltered employment: Cumulative costs, hours worked, and wages earned. Journal of Vocational Rehabilitation, 35, 85-92.
Cimera, R.E. (in press). The Economics of Supported Employment: What New Data Tell Us. Journal of Vocational Rehabilitation.
Cimera, R.E. & Burgess, S. (2011). Do adults with autism benefit monetarily from working in their communities? Journal of Vocational Rehabilitation, 34, 173-180
