Financial incentives to promote employment of people with disabilities: When and how do they work best? [Year 2 Funding Report]

Financial incentives are widely used in Canada and elsewhere as a way to address low employment among persons with disabilities. They can take different forms, including wage subsidies, human resource supports, job coaching and job carving, retention supports, wrap-around supports, and covering the costs of accommodation. However, stakeholders often have opposing perspectives on the merits of financial incentives for improving employment opportunities for people with disabilities, particularly in the case of wage subsidies. Many have questioned the sustainability of wage-subsidized employment and believe that financial incentives may undermine the contributions that persons with disabilities make in the labour market (Fraser et al., 2011). Conversely, others feel that wage subsidies, used under the right conditions, can help leverage employment opportunities for persons with disabilities. This perspective views wage subsidies in the same light as other financial incentives provided to employers in an effort to help support the recruitment, hiring, onboarding, and retention of persons with disabilities. 

This report contributes to our understanding of financial incentives by expanding our definition beyond wage-subsidies to other critical services offered by service providers, and by highlighting the diverse ways in which financial incentives are being used in Ontario.