DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT A: ECONOMIC AND SCIENTIFIC POLICY Reasonable Accommodation and Sheltered Workshops for People with Disabilities: Costs and Returns of Investments STUDY Abstract This Policy Department A study aims to provide the Employment and Social Affairs Committee (EMPL) with an overview of developments on costs and returns of investments for reasonable accommodation, sheltered workshops and labour policies for people with disabilities together with an economic analysis of selected measures. IP/A/EMPL/2013-03 January 2015 PE 536.295 EN This document was requested by the European Parliament's Committee on Employment and Social Affairs. AUTHORS Ms Jacqueline MALLENDER (Optimity Matrix) Mr Quentin LIGER (Optimity Matrix) Mr Rory TIERNEY (Optimity Matrix) Mr Daniel BERESFORD (Optimity Matrix) Mr James EAGER (Optimity Matrix) Dr Stefan SPECKESSER (IES) Dr Vahé NAFILYAN (IES) RESPONSIBLE ADMINISTRATORS Ms Laurence SMAJDA Policy Department A: Economic and Scientific Policy European Parliament B-1047 Brussels E-mail: [email protected] LINGUISTIC VERSIONS Original: EN ABOUT THE EDITOR To contact the Policy Department or to subscribe to its newsletter please write to: [email protected] H Manuscript completed in January 2015. Brussels, © European Union, 2015. This document is available on the Internet at: http://www.europarl.europa.eu/studies DISCLAIMER The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice and sent a copy. Reasonable Accommodation and Sheltered Workshops for People with Disabilities: Costsand Returns of Investments CONTENTS LIST OF BOXES 7 LIST OF FIGURES 7 LIST OF TABLES 8 EXECUTIVE SUMMARY 11 1. BACKGROUND 14 1.1. Policy context 14 1.2. Legal framework 16 1.3. Typology of interventions and definitions 18 2. SHELTERED WORKSHOPS 21 2.1. Definitions 21 2.2. Legal framework of sheltered workshops in the EU 22 2.3. Types of sheltered workshops in the EU 23 2.4. Trends in sheltered employment 29 2.5. Rehabilitation and vocational education and training 30 2.6. Conclusions 31 3. REASONABLE ACCOMMODATION 33 3.1. Definitions 33 3.2. Legislation at EU level 34 3.3. Reasonable accommodation in the UNCRPD 35 3.4. Types of reasonable accommodation 36 3.5. Legislation and policy at Member States level 37 3.6. Funding and provision of reasonable accommodation 45 3.7. Necessary and appropriate adaptations 46 3.8. Individual needs 50 3.9. Disproportionate burden 51 3.10.Conclusions 53 4. ALTERNATIVE LABOUR MARKET SERVICES 55 4.1. Definitions 55 4.2. Active labour market policies (ALMPs) 57 4.3. Passive labour market policies (PLMPs) 63 4.4. Specific labour market measures 65 4.5. General labour market measures 68 4.6. Conclusion 70 PE 536.295 3 Policy Department A: Economic and Scientific Policy 5. UNIVERSAL DESIGN 72 5.1. Definitions 72 5.2. Legislative and policy context 73 5.3. Universal Design in the Member States 75 5.4. Universal Design legislation and programmes 77 5.5. Universal Design and the built environment 78 5.6. Conclusion 80 6. EUROPEAN SOCIAL FUND 81 6.1. Overview 82 6.2. Access to employment & social integration 84 6.3. Conclusion 90 7. CONCLUSIONS AND POLICY RECOMMENDATIONS 92 7.1. General conclusions 92 7.2. Sheltered workshops 94 7.3. Reasonable accommodation and Universal Design 97 7.4. Alternative labour market services 99 7.5. European Social Fund 101 7.6. Policy recommendations 102 8. APPENDIX 1 - ECONOMIC ANALYSIS 104 8.1. Methodology 104 8.2. Impact analysis of the Act to Combat Unemployment amongst Severely Disabled People in Germany 108 8.3. Impact analysis of the 1995 Disability Discrimination Act in the UK 119 8.4. Civitan sheltered workshop in Budapest, Hungary - CBA 129 8.5. ‘Towards Work’ in Lithuania - CBA 134 8.6. Supported employment in the US 141 8.7. IPS Supported Placements 144 9. APPENDIX 2 - COUNTRY REPORTS 149 9.1. Belgium 149 9.2. Germany 161 9.3. Hungary 177 9.4. Spain 193 9.5. Sweden 203 9.6. United Kingdom 217 REFERENCES 227 4 PE 536.295 Reasonable Accommodation and Sheltered Workshops for People with Disabilities: Costsand Returns of Investments LIST OF ABBREVIATIONS ALMP Active Labour Market Policy ANED Academic Network of European Disability AWPIH Agence Wallonne pour l’Emploi de Personnes Handicapées BCR Benefit-Cost Ratio BHPS British Household Panel Survey CAD Computer-Assisted Design CBA Cost-Benefit Analysis CEN European Committee for Standardisation CENELEC European Committee for Electronic Standardisation DAC Disability Access Certificate DALD Day-to-Day Limitation Disability DDA Disability Discrimination Act EASPD European Association of Service Providers for Persons with Disabilities EDeAN European Design for All e-Accessibility Network EDF European Disability Forum ESA Employment and Support Allowance ESAT Etablissement et Services d’Aide par le Travail ESF European Social Fund EU European Union EUSE European Union of Supported Employment GDP Gross Domestic Product GVA Gross Value Added PE 536.295 5 Policy Department A: Economic and Scientific Policy HUF Hungarian Forint IES Institute for Employment Studies IGOS Interest Group on Occupational Services ILO International Labour Organisation NGO Non-Governmental Organisation OECD Organisation for Economic Co-operation and Development PES Public Employment Services PFRON Polish State Fund for Rehabilitation of Disabled People PLMP Passive Labour Market Policy PWD People with Disabilities RA Reasonable Accommodation SEK Swedish Krona SGB German Social Code SROI Social Return on Investment Analysis TFEU Treaty on the Functioning of the European Union UN United Nations UNCRPD United Nations Convention on the Rights of Persons with Disabilities UPIAS Union of the Physically Impaired Against Segregation VET Vocational Education and Training WAI Web Accessibility Initiative WEAG Workplace Equipment Adaptation Grant WHO World Health Organization 6 PE 536.295 Reasonable Accommodation and Sheltered Workshops for People with Disabilities: Costsand Returns of Investments LIST OF BOXES Box 1: Cost-benefit analysis of a sheltered workshop in Hungary 28 Box 2: Remploy 29 Box 3: Rehabilitation and VET measures in Poland and Germany 30 Box 4: Universal Design definition 73 Box 5: Best practice examples – General 93 Box 6: Best practice example – Sheltered workshops 96 Box 7: Best practice examples – Reasonable accomodation and Universal design 99 Box 8: Best practice example – Alternative labour market services 101 LIST OF FIGURES Figure 1: Public expenditure on labour market policy measures (categories 2, 4, 5, 6, 7) across the EU in year 2009 (% of total) 58 Figure 2: Expenditure (EUR million) on supported employment and rehabilitation (Labour market policy 5) in 20 Member States 59 Figure 3: Percentage of total expenditure in 2012 on labour market policy measures (categories 2-7) spent on category 5 ‘supported employment and rehabilitation’ 60 Figure 4: Percentage of working-age population (20-64) receiving disability benefits in EU Member States with OECD average (most recent data) 64 Figure 5: Proportion of total ESF budget pledged to priority axes that are relevant to the disabled population 83 Figure 6: Percentage of all ESF 2007-2013 project participants that are disabled 84 Figure 7: Percentage of all access to employment project participants that are disabled – ESF period 2007-2013 85 Figure 8: Percentage of measure recipients achieving an employment result in 19 Member States 2007-2010 87 Figure 9: Percentage of all social inclusion project participants that are disabled – ESF period 2007-2013 88 Figure 10: Decision tree structure for case study cost-benefit analysis 107 Figure 11: Labour market status of disabled and non-disabled people, Germany 1998-2011 110 Figure 12: Economic case study 1 - Test of the Difference-in-Difference Common Trends Assumption for Employment and Unemployment Rates in Germany 115 Figure 13: Economic case study 2 - Number of working age DDA disabled people in the UK (1997-2012) 121 PE 536.295 7 Policy Department A: Economic and Scientific Policy Figure 14: Economic case study 2 - Share of disabled people in the UK working- age population 1991-2002 121 Figure 15: Economic case study 2 - Employment rates of disabled and non-disabled people in the UK 1991-2002 122 Figure 16: Economic case study 2 - Testing the common trend assumption 1991-2002 125 Figure 17: Economic case study 4 - ‘Towards Work’, Sensitivity analysis 141 Figure 18: Economic case study 6 - Trial profile – IPS – EQOLISE 146 Figure 19: The number of people with disabilities participating in vocational training at AWIPH between 2008 and 2012 156 Figure 20: Employment rates of people with and without disabilities disaggregated by gender and age. 163 Figure 21: Number of disabled individuals employed in sheltered workshops (left axis) and through integration projects (right axis) 2007-2010. 167 Figure 22: The employment rate in the Hungarian population for people with and without disabilities. 179 Figure 23: The use and requirements of people with disabilities in employment regarding reasonable accommodation measures in Hungary 185 Figure 24: Number of disabled applicants to Samhill and the number of transition applicants from Samhall to non-subsidised employment (2008-2012) 209 Figure 25: Proportion of participants in projects for people with functional disabilities according to level of education. 215 Figure 26: Number of people with disabilities who started and completed ESF- funded activities under Priority 2 (developing a skilled and adaptable workforce) in the period 2008–2012 225 LIST OF TABLES Table 1: Main objectives regarding employment outlined by the European Disability Strategy 2010-2020 18 Table 2: Characteristics of sheltered workshops in Member States covered by this study (2012) 23 Table 3: Typology of sheltered employment programmes 25 Table 4: The status of Member States with regard to the UNCRPD and its corresponding Optional Protocol 36 Table 5: Types of reasonable accommodation 37 Table 6: Reasonable accommodation and public employment services in the Member States 39 Table 7: Examples of the provision of reasonable accommodation across the EU 47 Table 8: Examples of organisations that provide and fund reasonable accommodations across the EU 49 8 PE 536.295
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