Cost-Benefit Analysis of Vocational Rehabilitation Program for Persons with Significant Disabilities in Korea

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Cost-Benefit Analysis of Vocational Rehabilitation Program for Persons with Significant Disabilities in Korea

Journal Title: Niepełnosprawność - zagadnienia, problemy, rozwiązania - Year 2016, Vol 0, Issue 19

Abstract

The purpose of this study is to analyze the economic effect of the vocational rehabilitation support services that have been provided by the Ministry of Health and Welfare since 2001 to support the employment of persons with significant disabilities. The study aims to propose how to invest limited resources into the vocational rehabilitation programs to expand employment opportunities of people with significant disabilities. Estimated costs and benefits of vocational rehabilitation programs were based on an analysis 12,381 individuals who had participated in Korea’s vocational rehabilitation program for persons with significant disabilities and whose cases were closed in fiscal year 2011 and fiscal year 2012. Benefic data for this study were obtained only from the annual vocational rehabilitation program report for persons with significant disabilities cost data for this were obtained from the annual vocational rehabilitation program for persons with significant disabilities cost report. In this methodology, the cost of vocational rehabilitation program for persons with significant disabilities was calculated by taking annual costs of total program and the cost of administration. This study have illustrated the benefits that vocational rehabilitation program can provide for a comparatively nominal costs. Using cost-benefit analysis procedures, it is estimated that for every dollar spent on vocational rehabilitation program, $2.14(2011), $2.35(2012) are returned to society. The result of this study, however, it cannot be assumed that all sectors of society directly benefit from these outcomes; rather, each benefit may affect one segment of society which in turn indirectly benefit other sectors. For example, increased earnings are a benefit for user who received vocational rehabilitation services, but do not directly benefit taxpayers. But, it lead to increased tax contributions among vocational rehabilitation program user, which is a benefit to taxpayers. Also, increases in earnings also stimulate the economy through increased consumer spending and purchasing of goods and services. The vocational rehabilitation program is estimated to have a high economic value by providing employment opportunities to persons with significant disabilities in Korea as a public social program. An increase in employment opportunities of persons with significant disabilities also allows social inclusion of them and reduces other social service costs.

Authors and Affiliations

Woon-hwan Na

Keywords

EP ID EP206859
DOI -
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