Economic Impact Study Utah State Office of Rehabilitation CPPA Contacts: Jennifer Robinson (801) Sarah Wilhelm (406)
Questions What are the tangible benefits of the Vocational Rehabilitation Program? – Benefits to Individuals Increases in employment? Increases in earnings? – Public Benefits—Benefits to the State of Utah Increased tax revenue? Decreases in public support payments?
The Data Records from cases closed from October September 2005 Unemployment Insurance data matched to cases for quarterly earning for the 3 years before application and the 3 years after closure.
Individuals Studied Program3972 Control2058 Total6030
Earnings Table 11: Annual earnings after closure Program Program and EmployedControl Control and Employed Difference Between Program and Controlsig? Year1 $10, $15, $6, $12, $(3,534.13)*** Year2 $10, $15, $7, $14, $(3,346.86)*** Year3 $10,551.59$15, $7, $15, $(2,976.17)*** *** indicates statistically significant difference between at application and at closure amounts at the 1% confidence level.
Earnings Cont. Are there differences between the people that are in the program and control groups that would explain the differences in wages? Or is it due to the services provided by USOR Probably a little of both Regression Analysis
Split into 2 questions Changes in earnings for those who consistently work Changes in Employment for those with inconsistent employment
Earnings cont.: Regression Results
Employment: Regression Results
Private Benefits Table 14 – Private Benefits Increase in EarningsIncrease in Earnings from Increase in Employment TOTAL Annual Increase per Person $3,360$2,726 Present Value of Future Earnings per Person $56,903$46,173 Number of People Total Private Benefit$56,618,904 $226,109, $282,728,389.24
Public Benefits Table 17: Public Benefits Summary Increase in Tax Revenue $32,231, Decrease in Public Assistance Payments $34,219, Decrease in Medicaid Payments$4,570, Total $71,021,564.92
Cost Benefit Analysis Table 19: Cost Benefit Analysis For the State of Utah Public Benefits$71,021,565 Public Costs$12,599,900 Difference$58,421,665 Ratio5.64
Add Economic Impact of Federal Dollars Table 20: Economic Impact in Utah of Federal Funding for the Vocational Rehabilitation Program, 2004 Jobs250 Earnings$16,430,888 Tax Revenues$1,626,658 New Cost Benefit Ratio5.77 Source: Bureau of Economic Analysis RIMS II Data and author’s calculations.
Contact Information Jennifer Robinson, Associate Director, Sarah Wilhelm, Project Lead,