Open AccessVeterans' Labor Force Participation: What Role Does the VA's Disability Compensation Program Play?
Author(s) -
Courtney Coile,
Mark Duggan,
Audrey Guo
Publication year - 2015
Publication title -
american economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.936
H-Index - 297
eISSN - 1944-7981
pISSN - 0002-8282
DOI - 10.1257/aer.p20151062
Subject(s) - veterans affairs , compensation (psychology) , demographic economics , economics , service member , disability benefits , labour economics , service (business) , gerontology , political science , medicine , psychology , social security , social psychology , military personnel , law , economy , market economy
We explore trends over time in the labor force participation of veterans and non-veterans and investigate whether these patterns are consistent with a rising role for the Veterans’ Affairs Disability Compensation (DC) program, which pays benefits to veterans with service-connected disabilities and has grown rapidly since 2000. Using 35 years of March CPS data, we find that veterans’ labor force participation declined over time in a way that coincides closely with DC growth and that veterans have become more sensitive to economic shocks. Our findings suggest that DC program growth has contributed to recent declines in veterans’ labor force participation.
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