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The Labor Market Impact of the VOW Act on The U.S. Veterans: Evidence from the Current Population Survey

Davut Ayan ()

MPRA Paper from University Library of Munich, Germany

Abstract: Using data from the Current Population Survey, this paper provides evidence on the impact of the “Veterans Opportunity to Work to Hire Heroes Act of 2011 (VOW Act)” on the labor market performance of veterans. The effect of the legislation was evaluated on five outcomes; labor force participation, unemployment, employment, weekly hours of work, and weekly earnings. Differences-in-Differences estimates suggest that veterans without disability increase their labor force participation by around 4 percentage points and this increase leads to higher chances of employment by about 3 percentage points. Female veterans with disability have the highest increase in employment by about 17 percentage points. The findings of this study suggest that the VOW Act had a positive impact on veterans' labor market outcomes. The increase in labor force participation and employment is likely due to the VOW Act's provisions that provide veterans with access to job training, education, and financial assistance. The findings of this study are important for policymakers who are interested in improving the labor market outcomes of veterans.

Keywords: wage subsidy; veterans; difference-in-differences; program evaluation; disability (search for similar items in EconPapers)
JEL-codes: H25 J58 J60 (search for similar items in EconPapers)
Date: 2016-08, Revised 2021-06
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:117386

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