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Battle Scars? The Puzzling Decline in Employment and Rise in Disability Receipt among Vietnam Era Veterans

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  • David H. Autor
  • Mark G. Duggan
  • David S. Lyle

Abstract

Using Current Population Survey and US Army administrative data, we document that between 2000 and 2010, the employment rate of Vietnam era veterans fell markedly relative to non-veterans of the same cohorts while simultaneously their enrollment increased steeply in the Veterans Disability Compensation (DC) program, which provides healthcare and transfer payments to veterans with service-connected disabilities. Thirty percent of Vietnam era Army veterans enrolled in DC in 2006 received benefits for Post-Traumatic Stress Disorder, with median annual payments of $25,500. The declining employment and rising transfer payments to Vietnam era veterans underscore the long-term private and public costs of wartime service, potentially stemming from both adverse health consequences and policies that have expanded benefits eligibility.

Suggested Citation

  • David H. Autor & Mark G. Duggan & David S. Lyle, 2011. "Battle Scars? The Puzzling Decline in Employment and Rise in Disability Receipt among Vietnam Era Veterans," American Economic Review, American Economic Association, vol. 101(3), pages 339-344, May.
    • Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:339-44
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    References listed on IDEAS

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    1. Angrist, Joshua D. & Chen, Stacey H. & Frandsen, Brigham R., 2010. "Did Vietnam veterans get sicker in the 1990s? The complicated effects of military service on self-reported health," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 824-837, December.
    2. David H. Autor & Mark G. Duggan, 2007. "Distinguishing Income from Substitution Effects in Disability Insurance," American Economic Review, American Economic Association, vol. 97(2), pages 119-124, May.
    3. Boyle, Melissa A. & Lahey, Joanna N., 2010. "Health insurance and the labor supply decisions of older workers: Evidence from a U.S. Department of Veterans Affairs expansion," Journal of Public Economics, Elsevier, vol. 94(7-8), pages 467-478, August.
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    Cited by:

    1. David Card & Ana Rute Cardoso, 2012. "Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 57-93, October.
    2. Thomas Koch & Javier Birchenall, 2016. "Taking versus taxing: an analysis of conscription in a private information economy," Public Choice, Springer, vol. 167(3), pages 177-199, June.
    3. Cesur, Resul & Sabia, Joseph J. & Tekin, Erdal, 2013. "The psychological costs of war: Military combat and mental health," Journal of Health Economics, Elsevier, vol. 32(1), pages 51-65.
    4. Marie, Olivier & Vall Castello, Judit, 2012. "Measuring the (income) effect of disability insurance generosity on labour market participation," Journal of Public Economics, Elsevier, vol. 96(1), pages 198-210.
    5. Silva, José I. & Vall-Castelló, Judit, 2017. "Partial disability and labor market adjustment: The case of Spain," Labour Economics, Elsevier, vol. 48(C), pages 23-34.
    6. Silva, José I. & Vall-Castello, Judit, 2012. "Why Are So Many Disabled Individuals Not Working in Spain? A Job Search Approach," IZA Discussion Papers 6317, Institute of Labor Economics (IZA).
    7. Bingley, Paul & Lundborg, Petter & Vincent Lyk-Jensen, Stéphanie, 2017. "Brothers in Arms: Spillovers from a Draft Lottery," IZA Discussion Papers 10483, Institute of Labor Economics (IZA).
    8. Lucy Miller & John Kregel, "undated". "Federal Financial Benefits and Health Care Coverage for Veterans with Disabilities," Mathematica Policy Research Reports df09069b51604fd1bcf79fc0d, Mathematica Policy Research.
    9. Marta Schoch, 2020. "Essays on political economy, inequality and development," Economics PhD Theses 0120, Department of Economics, University of Sussex Business School.
    10. Torun, Huzeyfe & Tumen, Semih, 2016. "The effects of compulsory military service exemption on education and labor market outcomes: Evidence from a natural experiment," Economics of Education Review, Elsevier, vol. 54(C), pages 16-35.
    11. Peter Siminski & Simon Ville & Alexander Paull, 2016. "Does the military turn men into criminals? New evidence from Australia’s conscription lotteries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 197-218, January.
    12. Resul Cesur & Joseph J. Sabia & Erdal Tekin, 2020. "Post-9/11 War Deployments Increased Crime among Veterans," NBER Working Papers 27279, National Bureau of Economic Research, Inc.
    13. Chiara Dal Bianco, 2019. "Labour Supply and Welfare Effects of Disability Insurance: A Survey," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(1), pages 161-189, March.
    14. Majbouri, Mahdi, 2017. "Sir! I'd Rather Go to School, Sir!," IZA Discussion Papers 10787, Institute of Labor Economics (IZA).
    15. Brighita Negrusa & Sebastian Negrusa, 2014. "Home Front: Post-Deployment Mental Health and Divorces," Demography, Springer;Population Association of America (PAA), vol. 51(3), pages 895-916, June.
    16. Jose I. Silva & Judit Vall-Castello, 2013. "Partial Disability System and Labor Market Adjustment: The Case of Spain," Upjohn Working Papers and Journal Articles 13-201, W.E. Upjohn Institute for Employment Research.
    17. David Card & Ana Rute Cardoso, 2011. "Can Compulsory Military Service Increase Civilian Wages? Evidence from the Peacetime Draft in Portugal," NBER Working Papers 17694, National Bureau of Economic Research, Inc.
    18. Xintong Wang & Carlos A. Flores & Alfonso Flores-Lagunes, 2020. "The Effects of Vietnam-Era Military Service on the Long-Term Health of Veterans: A Bounds Analysis," Center for Policy Research Working Papers 234, Center for Policy Research, Maxwell School, Syracuse University.
    19. Davies, Paul S. & Purcell, Patrick J. & Engelhardt, Gary V., 2015. "Vietnam-era military service and DI participation," Economics Letters, Elsevier, vol. 136(C), pages 5-8.
    20. Johnston, David W. & Shields, Michael A. & Siminski, Peter, 2016. "Long-term health effects of Vietnam-era military service: A quasi-experiment using Australian conscription lotteries," Journal of Health Economics, Elsevier, vol. 45(C), pages 12-26.
    21. Gabriela Ertola Navajas & Paula Lopez Villalba & Martín Rossi & Antonia Vazquez, 2019. "The Long-Term Effect of Military Conscription on Personality and Beliefs," Working Papers 132, Universidad de San Andres, Departamento de Economia, revised Apr 2020.
    22. Lyk-Jensen, Stéphanie Vincent & Weatherall, Cecilie Dohlmann & Jepsen, Peter Winning, 2016. "The effect of military deployment on mental health," Economics & Human Biology, Elsevier, vol. 23(C), pages 193-208.
    23. Bruno Frey, 2012. "Well-being and war," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 59(4), pages 363-375, December.

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