A Primer on Economic Evaluation of Vocational Rehabilitation Programs
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Updated: Nov 1, 2026

Development of a Virtual Reality Assessment of Everyday Living Skills
Published on: April 23, 2014
Jean Yoon1,2, Richard Nelson3,4, Jack Tsai5,6
1Health Economics Resource Center, VA Palo Alto Health Care System, Palo Alto, CA, USA. jean.yoon@va.gov.
Abstract:
Though substantial evidence supports the effectiveness of vocational rehabilitation programs (VRPs) in increasing competitive employment among adults with mental illness, much less evidence has evaluated the value or economic impacts of VRP, a critical component to evaluating programs. Our objectives in this primer are (1) to describe different types of economic evaluations, including cost-effectiveness analysis, cost-benefit analysis, return-on-investment analysis, and budget impact analysis, (2) to provide concrete examples of published economic evaluations as applied to VRPs focused on adults with mental illness based on a narrative view of the literature, and (3) discuss methodological issues and provide recommendations in conducting economic evaluations of VRPs related to measurement of relevant costs, measurement of employment outcomes, measurement of health and health care outcomes, conducting multiple types of economic evaluations, analysis perspectives, and economic expertise. This information can assist vocational rehabilitation researchers, leaders, and funders of these programs, who may be less familiar with the application of economic evaluation to research on VRP, to determine the need for, and feasibility of economic evaluations for new programs for adults with mental illness.
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