Slow change in the employment services market: The early years of Ticket to Work

Abstract

The Ticket to Work program, together with other initiatives created by the Ticket to Work and Work Incentives Improvement Act, attempts to develop a new employment services marketplace to increase the level and mix of employment support services for SSA beneficiaries interested greater self-sufficiency. Rather than setting up a single training program, TTW establishes payment mechanisms designed to induce employment-service providers to increase the supply of programs and the range of approaches. In this paper we review early finding for the three essential ingredients necessary for TTW success: the sufficiency of beneficiary demand for employment services with an aim toward eventually leaving SSA benefits; the adequacy of the supply of new employment service providers to meet beneficiary demand with efficient and innovative approaches not already available through the previous state VR system; and the sufficiency of SSA support to facilitate the new market, providing information to beneficiaries and providers, and efficient management of the ticket payment system. Supporting survey data indicate that there may be substantial unmet demand for employment services that TTW could fill. The supply of new and innovative employment service providers, however, has thus far been anemic due to a perception by providers that the new program is too risky and cumbersome relative to potential payments offered. SSA has made strides in implementing the program and continues to offer program changes to improve how TTW functions. We conclude that it is too early to tell whether the changes implemented and proposed thus far will revive interest in the program and energize the service delivery market.