Veterans’ Labor Force Participation: What Role Does the VA’s Disability Compensation Program Play?

Courtney Coile, Mark Duggan and Audrey Guo

No 20932, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: H56 J14 J22 (search for similar items in EconPapers)
Date: 2015-02
New Economics Papers: this item is included in nep-lab
Note: AG EH LS PE
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Citations: View citations in EconPapers (6)

Published as Courtney Coile & Mark Duggan & Audrey Guo, 2015. "Veterans' Labor Force Participation: What Role Does the VA's Disability Compensation Program Play?," American Economic Review, American Economic Association, vol. 105(5), pages 131-36, May.

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Journal Article: Veterans' Labor Force Participation: What Role Does the VA's Disability Compensation Program Play? (2015)
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