Longitudinal Trends of Competitive Employment for Developmentally Disabled Adults: A Benefit-Cost Analysis
McCaughrin, Wendy Bordoff
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https://hdl.handle.net/2142/69221
Description
Title
Longitudinal Trends of Competitive Employment for Developmentally Disabled Adults: A Benefit-Cost Analysis
Author(s)
McCaughrin, Wendy Bordoff
Issue Date
1988
Doctoral Committee Chair(s)
Heal, Laird W.
Department of Study
Education
Discipline
Education
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Labor
Education, Special
Education, Vocational
Abstract
The purpose of this study was to complete a benefit-cost analysis using analytical concepts and empirical measurements to determine the economic efficiency of a Competitive Employment Program for 22 developmentally disabled adults over an eight-year period. While Competitive Employment Programs have demonstrated that developmentally disabled adults are capable of becoming members of the work force at a much higher rate than previously thought possible, it has become increasingly important that such programs also demonstrate their economic efficiency in order to compete for scarce government resources.
This analysis consisted of six sequential steps. First, the revenue perspective of the taxpayer was selected as the most relevant one for public policy. Next, costs and benefits from this perspective were identified and valued. Then, all dollar values were discounted to make dollar amounts from different years commensurable. The economic efficiency of the Competitive Employment Program for the 22 subjects was indexed over an eight-year period using net benefits as well as benefit/cost ratios. Finally, sensitivity tests were done to evaluate the net benefit of the competitive employment program throughout a broad range of probable benefits and costs.
Real discounted dollar savings to the taxpayer were found over the eight-year period as well as for each year between 1981 and 1986. In terms of the employment history of the 22 subjects, while in the FSVTP Program, those who remained employed for eight years demonstrated savings to the taxpayer, while those who left after two years for a variety of reasons demonstrated a net cost.
While there is a need to be cautious when generalizing, the results of this longitudinal study coupled with earlier benefit-cost analyses suggest that Competitive Employment Programs for workers with developmental disabilities become economically efficient during their third year of operation. Such programs justify the government to continue providing viable competitive employment opportunities for adults with developmental disabilities.
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