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

19 Pages Posted: 9 Feb 2015 Last revised: 10 Jul 2015

See all articles by Courtney Coile

Courtney Coile

Wellesley College; National Bureau of Economic Research (NBER)

Mark Duggan

Stanford University - Department of Economics

Audrey Guo

Stanford University

Date Written: February 2015

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.

Suggested Citation

Coile, Courtney and Duggan, Mark and Guo, Audrey, Veterans’ Labor Force Participation: What Role Does the Va's Disability Compensation Program Play? (February 2015). NBER Working Paper No. w20932. Available at SSRN: https://ssrn.com/abstract=2562203

Courtney Coile (Contact Author)

Wellesley College ( email )

106 Central Street
Wellesley, MA 02181
United States
781-283-2408 (Phone)
781-283-2177 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
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Mark Duggan

Stanford University - Department of Economics ( email )

Landau Economics Building
579 Serra Mall
Stanford, CA 94305-6072
United States

Audrey Guo

Stanford University ( email )

Stanford, CA 94305
United States

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