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Economic self-sufficiency and life stability one year after starting a social enterprise job (Rotz, Maxwell, & Dunn 2015)

Absence of conflict of interest.

Citation

Rotz, D., Maxwell, N., & Dunn, A. (2015). Economic self-sufficiency and life stability one year after starting a social enterprise job. Oakland: Mathematica Policy Research.

Highlights

  • The study’s objective was to examine the impact of Chrysalis Social Enterprise (SE) program on employment and earnings outcomes.
  • The study used a matched comparison group design to compare employment and earnings outcomes between participants that were hired by a social enterprise and participants that were eligible for hire but did not seek employment from a social enterprise. Using survey data, the authors conducted a statistical model to examine differences in outcomes between the groups.
  • The study did not find any statistically significant relationships between SE program participation and employment or earnings outcomes one-year following program exit.
  • The study receives a low evidence rating. This means we are not confident that the estimated effects are attributable to Chrysalis Social Enterprise, and not to other factors. However, the study did not find statistically significant effects.

Intervention Examined

Chrysalis Social Enterprise (SE)

Features of the Intervention

Social Enterprises (SE) are businesses focused on hiring and assisting people that face barriers to employment to support transitions into the workforce. The Chrysalis SE program in Los Angeles, California provides employment services to those that request it. Participants receive initial skill level assessments, occupational training and counseling services, career seminars, and support groups. Individuals with the highest employment barriers are eligible to work shifts at a Chrysalis SE. Once work is available, eligible participants are hired by Chrysalis. Chrysalis serves many participants including low-income groups that face barriers to employment such as formerly incarcerated and/or homeless populations.

Features of the Study

The study used a matched comparison group design to compare employment and earnings outcomes between participants that were hired by Chrysalis SE (treatment group) and participants that were eligible for hire but did not seek employment from Chrysalis SE (comparison group). Following initial training and employment services, individuals facing significant barriers to employment entered a labor pool, eligible to be selected for at least one employment shift at one of the Chrysalis SE locations. The treatment group consisted of 59 participants that entered the SE labor pool and were selected for at least one shift. The comparison group consisted of 32 participants that entered the labor pool and were also eligible for SE employment; however, they did not participate in at least one shift. Sample participants were generally male, Black, and had low rates of employment prior to program participation. Primary data sources included intake information on participant demographics, a baseline survey to measure participant work history and employment barriers, an exit survey, and a follow-up survey one year after completion of the baseline survey collecting information on study outcomes. Data were collected from individuals who started or were referred to SE employment programs from April 1, 2012, to March 30, 2013. The authors used a statistical model to examine differences in employment and earnings outcomes between participants in the SE program and comparison groups one-year following program exit.

Findings

Earnings and wages.

  • The study did not find a significant relationship between income and SE program participation.

Employment.

  • The study did not find a significant relationship between employment and SE program participation.

Considerations for Interpreting the Findings

The analysis did not control for baseline outcomes greater than one year before program participation as required by the protocol, making it ineligible for a moderate causal evidence rating. These preexisting differences between the groups—and not the SE program— could explain any observed differences in outcomes.

Causal Evidence Rating

The quality of causal evidence presented in this report is low because the authors did not ensure that the groups being compared were similar before the intervention. This means we are not confident that the estimated effects are attributable to Chrysalis Social Enterprise and other factors are likely to have contributed. However, the study did not find statistically significant effects.

Reviewed by CLEAR

July 2022

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