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Potential Assistance for Disadvantaged Workers: Employment Social Enterprises

Author

Listed:
  • Nan L. Maxwell

    (Mathematica Policy Research)

  • Dana Rotz

    (Mathematica Policy Research)

Abstract

By integrating a business mission into a transitional jobs program, employment social enterprises (ESEs) provide temporary work and a supported work environment to reduce the barriers facing disadvantaged workers while generating revenue to cover production costs. This study uses surveys of workers in and financial statements from seven ESEs to provide information for three sets of complementary analyses: a pre-post analysis examines changes in employment between the time a person starts ESE work and about one year later; a case study uses propensity score methods to compare changes in employment between ESE workers and similar people who did not work in an enterprise; and a cost-benefit analysis estimates the potential value of ESE jobs. Results suggest that individuals have close to 21% gain in employment one year after starting ESE work; taxpayers gain at least $0.42 for every dollar spent on an ESE job; the return to society of developing an ESE is at least 34%; and the social returns to converting a profit-driven business into an ESE exceed 100%. Although the study cannot control for many of the factors that would allow estimation of causal impacts, it provides some of the first preliminary evidence of the value of the ESEs’ public-private approach to increase workforce skills and employment and stabilize lives of individuals with employment barriers.

Suggested Citation

  • Nan L. Maxwell & Dana Rotz, 2017. "Potential Assistance for Disadvantaged Workers: Employment Social Enterprises," Journal of Labor Research, Springer, vol. 38(2), pages 145-168, June.
  • Handle: RePEc:spr:jlabre:v:38:y:2017:i:2:d:10.1007_s12122-017-9248-5
    DOI: 10.1007/s12122-017-9248-5
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    References listed on IDEAS

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    Cited by:

    1. Rasa Subačienė & Ramunė Budrionytė & Aida Mačerinskienė & Daiva Tamulevičienė, 2019. "Social enterprises: evaluation of the impact of state support and corporate income exemptions on the state budget of Lithuania," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1156-1171, March.

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    More about this item

    Keywords

    Employment social enterprises; Work integrated social enterprises; Transitional jobs; Job training; Employment barriers;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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