The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program
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Autor_The impact of disability.pdf
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1.62 MB
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Adobe PDF
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30509904fa7327440e94825ae28fa8f2
Author(s)
Duggan, Mark
Greenberg, Kyle
Lyle, David S.
Autor, David H
Date Issued
July 2016
Journal
American Economic Journal: Applied Economics
Publisher
American Economic Association
Citation
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
Version
Final published version
Abstract
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.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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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.
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DOI of Published Version
https://doi.org/10.1257/app.20150158
