Assistive Technology & the Economics of Independence
Measuring the Return on Assistive Technology
How economists measure the benefits of assistive technology against its costs, and why the returns are often very high.
Assistive technology, from glasses and hearing aids to screen readers and wheelchairs, costs money. Governments, employers and families often ask whether it is worth it. Economists answer with cost-benefit analysis.
Counting benefits
Benefits of assistive technology include:
- Employment: people who can use a screen reader or magnifier can work in many jobs.
- Education: students who can access materials learn more and stay in school longer.
- Independence: less need for paid carers or help from family, freeing their time too.
- Health and safety: fewer falls and accidents.
- Wellbeing: greater participation in social life.
The evidence
The World Health Organization and UNICEF’s 2022 Global Report on Assistive Technology estimated that over 2.5 billion people need one or more assistive products, and that nearly a billion of them lack access, mostly in low- and middle-income countries. The report cites economic analyses finding that investing in assistive technology gives high returns. For example, an analysis by the ATscale partnership estimated that every dollar invested in assistive technology could bring a return of about nine dollars over the lifetimes of users.
Glasses: a simple example
Many people need glasses for near vision as they age. Research in India, including a randomised trial among tea pickers in Assam published in 2018, found that workers given reading glasses increased their productivity significantly, especially older workers. Glasses cost very little compared with the extra income they enabled.
A government office employs a clerk who loses much of their sight. Providing a screen reader, training and a larger monitor costs a modest amount. Without it, the clerk might have to leave the job and depend on disability benefits. With it, the clerk continues working and paying taxes. The one-time cost is recovered quickly.
Why underinvestment persists
Despite high returns, many people lack assistive technology. Costs fall on one budget, such as health, while benefits appear in others, such as employment or social care. Users may not be able to afford upfront costs even when long-term gains are large. These gaps are a reason for public funding and coordination.
The price tag of an assistive device is only half the calculation. Its value in work, education, independence and reduced care costs is often many times greater, but spread across different people and budgets.
- Cost-benefit analysis weighs assistive technology's costs against benefits in work, education, independence and health.
- The WHO and UNICEF estimated over 2.5 billion people need assistive products.
- Studies find high returns, such as reading glasses raising tea pickers' productivity in India.
- Costs and benefits falling on different budgets contributes to underinvestment.
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