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Services Received by Persons Accepted Into the Program

services received by VR clients. For example, it should be possible, without unduly burdening counselors, to routinely collect a more detailed profile on each client of the cost, intensity, and frequency of specific services provided, purchased, or arranged for by the VR agency. Alternatively, RSA could conduct periodic studies of client samples, although the multiple disabilities and service types in the VR program would make this approach technically complex.

Second, we recommend that RSA further examine the specific issue of racial disparities in spending. This can be done in at least two ways. RSA could make use of existing data to shed light on this problem. For example, the data from the Client Assistance Program (which exists to assist clients who have complaints during the VR process) might be useful for determining whether conflicts that exist between clients and the VR agency are related to the racial or ethnic group membership of the client. Alternatively, evaluations could be designed to include this issue. Thus, RSA could ensure that provision is made for the collection of generalizable data on the experiences of clients who are members of minority groups in the current longitudinal evaluation study, and could focus on the issue in future evaluation contracts. Such a focus may well require over-sampling members of minority groups, or designing additional data collection instruments for measuring processes related to minority issues in vocational rehabilitation.

Chapter 5

Employment and Earnings Outcomes

The fourth and final evaluation question asked us to describe the results
achieved through the delivery of vocational rehabilitation (VR) services.
Traditionally, the VR program has been justified in economic terms as a
"good investment." Supporters claim that the costs of providing services to
persons with disabilities are more than balanced by rehabilitated clients'
improved employment levels and earnings. However, such claims have
usually been based on analyses of the short-term data collected by the
state VR agencies.1 Few studies have examined long-term outcomes; of
those that did, one looked at clients who received services before the
implementation of the Rehabilitation Act of 1973, and another at clients
from only one state agency.2 Furthermore, little is known about how the
long-term impact of the program varies for subgroups of clients who differ
in type and severity of disability, or in other background characteristics.
We examined the long-term economic outcomes of the program using the
RSA-SSA "data link” data base containing RSA's information on the
characteristics of the nearly 865,000 VR applicants whose cases were
closed in fiscal year 1980, combined with information from SSA on the
annual earnings of each for the years 1972 through 1988. Thus, the data
base followed these individuals for several years before referral to the
program and for 8 years after case closure in 1980. In our analyses, we
compared the economic outcomes of three groups: (1) clients who were
rehabilitated, (2) clients who were served but not rehabilitated, and
(3) clients who were accepted but who dropped out before a service
program was developed or before services were initiated. We do not claim
the groups are fully comparable, with no differences other than their VR
experiences. Yet, with statistical control methods, the second and third
groups do provide an initial step towards isolating the program's effects as
well as possible, short of an actual experiment where the study design
(including randomly assigned experimental and control groups) helps
eliminate sources of bias that can affect conclusions. Since the data
included all clients whose cases were closed in the year 1980, we could

'For example, RSA reported that for the group of clients (without severe disabilities) rehabilitated in
1988, employment in the competitive labor market jumped 69 percentage points from application to
closure and average weekly wages rose $163. (For those with severe disabilities, RSA reported a
63 percentage point gain in the size of the group employed and a $137 per week gain in average
wages.) Rehabilitation Services Administration, Comparison of Economic Gains Achieved by Persons
with Severe and Non-severe Disabilities Rehabilitated by State Vocational Rehabilitation Agencies in
Fiscal Year 1988 (Washington, D.C.: U.S. Department of Education, 1990).

2Berkeley Planning Associates, Use of the Social Security Data-Link for Assessing the Impact of the
Federal-State Vocational Rehabilitation Program (Washington, D.C.: U.S. Department of Education,
January 1989). Though performed and published in the 1980's, this study analyzed a client cohort from
the mid-1970's, before major changes in the 1973 law were fully implemented. D. Dean and R.C. Dolan,
"Establishing a Mini-Data Link," in M. Berkowitz (ed.), Measuring the Efficiency of Public Programs
(Philadelphia: Temple University Press, 1988), 233-55.

Employment and Earnings Outcomes

Organization of the
Chapter

examine program impact for clients who differed in type and severity of disability. (Chapter 1 contains a more detailed description of the data and our methods of analysis.)

Briefly, those applicants who were rehabilitated worked more and earned more than their group did before VR, and the trends were better than those for non-rehabilitants (partial participants) and dropouts. On the other hand, the rise in the proportion of those with earnings in any year was short-lived (lasting only 2 years after closure), and subsequent earnings gains for the shrinking fraction working were modest. Using statistical methods to control for some pre-existing differences between the groups, we found the rehabilitants' work level and earnings higher at the 5-year point after VR than those for the other two groups.

This chapter presents details of our findings in three sections, with results in each given separately for clients with physical disabilities, emotional disabilities (including mental illness or substance abuse), and mental retardation.3 In the first section, we examine short-term economic outcomes, using RSA data alone to show clients' status at the time of closure. In the second section, we examine three indicators of long-term economic outcomes, covering 8 years after case closure-how many worked, how continuously they worked, and what they earned. In this section, we also present the results of more detailed statistical analyses of the effect of the program, taking account of differences among the groups other than their VR experience. In the third section, we assess the program's effect on long-term outcomes separately for those with severe and non-severe disabilities.

Short-Term Outcomes

The state agency records one of three outcomes for clients accepted into the VR program. Clients may (1) drop out before a service plan is developed or before services are initiated, (2) receive some services but not be rehabilitated, or (3) be rehabilitated. Clients are classified as rehabilitated if they are engaged in an occupation commensurate with their abilities for 60 days after the provision of VR services.

Approximately 70 percent of clients with physical disabilities (including visual, hearing, and orthopedic impairments, amputations, and chronic

3In the previous chapter, we found that clients with different types of disabilities received VR services that varied in type and cost. We also expected that these client groups would face different barriers to employment. Thus, we analyzed outcomes for these groups separately also; aggregate analysis of all clients in the data base would not reveal any differences by disability.

Figure 5.1: Short-Term Outcomes of

the VR Program

Employment and Earnings Outcomes

illnesses) and clients with mental retardation were rehabilitated in 1980. About half the clients with emotional disabilities (those due to substance abuse or mental illness) were rehabilitated. Roughly 10 percent in each of the three disability groups dropped out of the program. The remaining clients received some services but were not rehabilitated. The results, presented by disability group, are contained in figure 5.1.

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Employment and Earnings Outcomes

disabilities), become homemakers (RSA recognizes achieving greater independence at home as an acceptable rehabilitation outcome for some clients), or are engaged in self-employed or unpaid work. As can be seen in table 5.1, a majority of clients who were rehabilitated found work in the competitive labor market. However, a substantial percentage of clients with mental retardation were placed in sheltered employment. Also, across all three disability groups, men were more likely than women to find competitive employment. A greater proportion of women than men were rehabilitated as homemakers, a pattern that was especially pronounced among clients with physical disabilities.

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