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Invisible Wounds: How Mental Disability Benefits Shape Veteran Well-Being

Author

Listed:
  • David Silver
  • Jonathan Zhang

Abstract

We study impacts of VA disability compensation on the health and well-being of the large and rapidly growing population of veterans claiming mental disorders. We leverage quasi-random assignment of veterans to medical examiners with varying assessing tendencies. An additional $1,000 per year decreases food insecurity and homelessness by 4.1 and 1.3 percent over 5 years. Health care utilization increases, with greater engagement in preventive care. We estimate precise null average effects on health and mortality. Those on the margin of claim denial experience worse outcomes on average than other applicants, with suggestive evidence of large treatment effects for this subpopulation.

Suggested Citation

  • David Silver & Jonathan Zhang, 2026. "Invisible Wounds: How Mental Disability Benefits Shape Veteran Well-Being," American Economic Journal: Economic Policy, American Economic Association, vol. 18(1), pages 282-317, February.
    • Handle: RePEc:aea:aejpol:v:18:y:2026:i:1:p:282-317
    DOI: 10.1257/pol.20230811
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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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