Affiliations: Employment and Disability Institute, Cornell University, Ithaca, NY, USA
Note: [] Address for correspondence: Zafar E. Nazarov, Employment and Disability Institute, Cornell University, 305 Dolgen Hall, Ithaca, NY 14853-3901, USA. Tel.: +1 607 255 3083; E-mail: zen2@cornell.edu
Abstract: Using an observational approach, we investigate the relationship between the receipt of prevocational services and subsequent hourly wages of consumers participating in supported employment programs. To evaluate the potential impact of these services on wages of consumers, we use six years (2005–2010) of data from of the New York Integrated Supported Employment Report (NYISER) data management system. Results indicate that receipt of prevocational services has a negative correlation with hourly wages of consumers. This finding suggests that prevocational services may have detrimental effects on providers' and consumers' expectations on consumers' work ability and productivity resulting in reduced hourly wages. Furthermore, participation in prevocational services may serve as a signal to employers about consumer's productivity.
Keywords: Prevocational services, supported employment, hourly wages, random effect model
