BACKGROUND: Self-employment is an attractive option for people with disabilities because it offers a means to economic independence while overcoming barriers (ODEP, 2013). Compared to national averages, however, self-employment is an underutilized employment strategy in Vocational Rehabilitation (VR). Cited reasons for this discrepancy include VR concerns about self-employment business failures and income potential.
OBJECTIVE: This paper explores the viability of VR self-employment closures across geography.
METHODS: We compiled 2008 and 2009 RSA-911 data with zip code and county variables from 47 VR agencies (n = 711,037 cases). We used Rural-Urban Commuting Area (RUCA2) codes matched on zip code to group cases into urban, rural, very rural, and isolated rural geography.
RESULTS: Closure rates to self-employment increased as geography become more rural. Weekly earnings rates were similar across competitive and self-employment closures, but consumers closed to self-employment worked fewer hours per week (p≤0.001) and earned significantly higher hourly wages (p≤0.001).
CONCLUSION: Data show that self-employment offers a viable employment option in terms of weekly earnings and hourly wages. Increased capacity in self-employment is important for rural consumers who face additional barriers to employment such as limited transportation options and a narrower range of competitive employment options.
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