Examining the labor market presence of US WISEs

an article by Kate Cooney (Yale University School of Management, Connecticut, USA) published in Social Enterprise Journal Volume 9 Issue 2 (2013)

Abstract

Purpose
Work integration social enterprises (WISEs) create jobs through business ventures that function as locations for training and employment of disadvantaged workers. A key challenge for US WISEs is that the businesses that are easiest to launch and best suited to absorb large numbers of unskilled workers may be located in the same low wage labour market sectors out of which these interventions are designed to catapult workers. This paper aims to present data on an understudied aspect of WISEs: the labour market niches where they are active, the occupations associated with these labour market positions, and the work conditions offered through their WISE businesses.

Design/methodology/approach
Data presented in this paper are from a national WISE database developed by the author that includes 254 businesses associated with 123 WISEs, and a pilot study of 15 WISEs testing an instrument for use in a national survey of US WISEs. Each business associated with the WISEs in the national database was coded for industry, occupation and wage data using categories developed by the US Bureau of Labor Statistics. Each WISE business was further coded as preparing its workers for either low or middle skill jobs. These data were analysed using frequency counts, chi square tests of association and a two-step cluster analysis. To explore employment conditions inside WISE businesses, the pilot study data were analysed using a multiple case study analysis approach. Through focused coding techniques, descriptions of the employment conditions associated with the WISE jobs are reviewed.

Findings
Analysis at the level of occupation category reveals that about 72 percent of the jobs that WISEs train clients to perform exist in low skill occupations. Chi-square tests of association between NTEE code (a proxy for target population) and job skill level are not significant suggesting that low skill training is utilised by organisations serving clients facing a range of disadvantage. Cluster analyses indicate that for WISEs targeting disabled populations and for newer organisations targeting the general unemployed populations, low skill job training pervades but for education organisation and for older employment organisations, middle skill job training is more prevalent. The pilot data analyses show that the WISEs offer minimum wage or higher wage positions but many without guaranteed hours or a clear pathway out of WISE employment.

Practical implications
These data suggest WISEs in the USA have grown well beyond their earlier, narrower niche working with the disabled to employ a much broader portfolio of client populations, many higher functioning. However, the findings that many WISEs are positioned in the low skill labour market and on some dimensions can mirror the low skill labour market employment conditions suggest that additional aspects of WISE workforce development strategy should be taken into account.

Originality/value
The paper focuses on the labour market niches where WISEs are active, the occupations associated with these labour market positions, and the work conditions offered.

Hazel’s comment:
I could not find a similar study on social enterprises in the UK. If there is one then please let us know in the comments.

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