The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program

Combining administrative data from the US Army, Department of Veterans Affairs, and Social Security Administration, we analyze the effect of the VA's Disability Compensation (DC) program on veterans' labor force participation and earnings. We study the 2001 Agent Orange decision, a unique...

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Main Authors: Duggan, Mark, Greenberg, Kyle, Lyle, David S., Autor, David H
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Language:en_US
Published: American Economic Association 2017
Online Access:http://hdl.handle.net/1721.1/110287
https://orcid.org/0000-0002-6915-9381
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author Duggan, Mark
Greenberg, Kyle
Lyle, David S.
Autor, David H
author2 Massachusetts Institute of Technology. Department of Economics
author_facet Massachusetts Institute of Technology. Department of Economics
Duggan, Mark
Greenberg, Kyle
Lyle, David S.
Autor, David H
author_sort Duggan, Mark
collection MIT
description Combining administrative data from the US Army, Department of Veterans Affairs, and Social Security Administration, we analyze the effect of the VA's Disability Compensation (DC) program on veterans' labor force participation and earnings. We study the 2001 Agent Orange decision, a unique policy change that expanded DC eligibility for Vietnam veterans who served in theater but did not expand eligibility to other veterans of this era, to assess the causal effects of DC enrollment. We estimate that benefits receipt reduced veterans' labor force participation by 18 percentage points, though measured income net of transfer income rose on average.
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spelling mit-1721.1/1102872022-09-29T15:09:22Z The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program Duggan, Mark Greenberg, Kyle Lyle, David S. Autor, David H Massachusetts Institute of Technology. Department of Economics Autor, David H Combining administrative data from the US Army, Department of Veterans Affairs, and Social Security Administration, we analyze the effect of the VA's Disability Compensation (DC) program on veterans' labor force participation and earnings. We study the 2001 Agent Orange decision, a unique policy change that expanded DC eligibility for Vietnam veterans who served in theater but did not expand eligibility to other veterans of this era, to assess the causal effects of DC enrollment. We estimate that benefits receipt reduced veterans' labor force participation by 18 percentage points, though measured income net of transfer income rose on average. United States. Social Security Administration (grant #10-P-98363-1-05 to the National Bureau of Economic Research as part of the SSA Retirement Research Consortium) 2017-06-26T22:28:47Z 2017-06-26T22:28:47Z 2016-07 Article http://purl.org/eprint/type/JournalArticle 1945-7782 1945-7790 http://hdl.handle.net/1721.1/110287 Autor, David H., Mark Duggan, Kyle Greenberg, and David S. Lyle. “The Impact of Disability Benefits on Labor Supply: Evidence from the VA’s Disability Compensation Program†.” American Economic Journal: Applied Economics 8, no. 3 (July 2016): 31–68. © 2017 American Economic Association https://orcid.org/0000-0002-6915-9381 en_US http://dx.doi.org/10.1257/app.20150158 American Economic Journal: Applied Economics Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association
spellingShingle Duggan, Mark
Greenberg, Kyle
Lyle, David S.
Autor, David H
The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program
title The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program
title_full The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program
title_fullStr The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program
title_full_unstemmed The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program
title_short The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program
title_sort impact of disability benefits on labor supply evidence from the va s disability compensation program
url http://hdl.handle.net/1721.1/110287
https://orcid.org/0000-0002-6915-9381
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