Study: Employment Social Enterprises Drive Lasting Gains in Jobs and Earnings

A seven-year Mathematica study found that ESEs help participant workers gain career and personal stability that lasts for years.

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Explore more in our study summary (PDF)

Employment social enterprises (ESEs) help people facing barriers to employment reconnect to the workforce through paid work and supportive services. But what happens after participants graduate from these programs?

In 2021, Redefine Alliance partnered with researchers from Mathematica to analyze long-term employment and earnings data from the California Employment Development Department. This study tracked nearly 10,000 workers across eight California ESEs for up to seven years.

Data shows that the benefits of ESE participation continue well beyond program completion:

  • Employment increases significantly after participation, rising from about 20–40% before ESE engagement to 60–70% afterward
  • Earnings grow over time, with participants surpassing their pre-program income within a few years
  • Gains persist for years, indicating lasting connections to the workforce
The 2021 Mathematica study of employment social enterprises found significant improvement in employment and wages for individuals who participate in ESE programming. These benefits persist even after graduation.

While disparities in outcomes remain (which may highlight opportunities to strengthen ESE programming), this study shows that participants facing the greatest barriers to employment see meaningful progress towards building economic power when connected to an ESE.

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