The purpose of this article is to recommend public policy and policy research that would facilitate noncategorical diagnostic procedures for very young handicapped children. The literature on the effects of labeling is reviewed briefly. Current policy and practice in regard to categorical and noncategorical approaches are summarized, including four descriptive studies on this issue. Several policy options are discussed with consideration of the strengths and weaknesses of each. Finally, potential misuses are reviewed and recommendations for policy research are offered.
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