Sub Minimum Wage for Persons with Severe Disabilities: Comparative Perspectives

Abstract

This article examines the extent to which the sub minimum wage (SMW) is an effective labor market policy for people with severe disabilities to address their under-employment and lack of opportunity to be gainfully employed. We assess SMW policies in the United States, Australia and Israel, along four conceptual dimensions delineating participants, programs, service delivery, and outcomes. Similarities and differences in policy and practice on these dimensions are found across countries, primarily in use of competitive versus non-competitive employment programs and wage calculation. In addition, across countries, SMW serves relatively small populations with members perceived to be in need of protection from potential job exploitation. Our primary conclusion from the analysis is that more research is crucial in order to rethink these policies and their effectiveness.