Vocational Rehabilitation from a Behavioral Economics Perspective

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Abstract

Behavioral economics represents a synthesis of basic principles of economics and behavioral psychology that has become a major perspective for understanding addictions and health service utilization. The present article discusses the basic assumptions and concepts of behavioral economics as they apply to vocational rehabilitation (VR) services. The concepts of value and unit price, demand, elasticity, substitutes and complements, and discounting are examined within the context of VR and common choices of VR participants. Common models of VR, such as supported employment and transitional employment, are discussed from a behavioral economics perspective. Implications for VR programs and staff are identified.

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