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The Effect of Disability Insurance on Health Investment: Evidence from the Veterans Benefits Administration’s Disability Compensation Program

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  • Perry Singleton

Abstract

I examine whether individuals respond to monetary incentives to detect latent medical conditions. The effect is identified by a policy that deemed diabetes associated with herbicide exposure a compensable disability under the Veterans Benefits Administration’s Disability Compensation program. Since a diagnosis is a requisite for benefit eligibility, and nearly one-third of diabetics remain undiagnosed, the advent of disability insurance may have encouraged the detection of diabetes among the previously undiagnosed population. Evidence from the National Health Interview Survey suggests that the policy increased the prevalence of diagnosed diabetes by 3.1 percentage points among veterans.

Suggested Citation

  • Perry Singleton, 2009. "The Effect of Disability Insurance on Health Investment: Evidence from the Veterans Benefits Administration’s Disability Compensation Program," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
    • Handle: RePEc:uwp:jhriss:v:44:y:2009:i4:p998-1022
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    References listed on IDEAS

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    1. Mark Duggan & Robert Rosenheck & Perry Singleton, 2006. "Federal Policy and the Rise in Disability Enrollment: Evidence for the VA's Disability Compensation Program," NBER Working Papers 12323, National Bureau of Economic Research, Inc.
    2. Fuchs, Victor R. (ed.), 1982. "Economic Aspects of Health," National Bureau of Economic Research Books, University of Chicago Press, number 9780226267852, August.
    3. Victor R. Fuchs, 1982. "Economic Aspects of Health," NBER Books, National Bureau of Economic Research, Inc, number fuch82-1, January.
    4. Borsch-Supan, Axel, 2000. "Incentive effects of social security on labor force participation: evidence in Germany and across Europe," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 25-49, October.
    5. Dan Black & Kermit Daniel & Seth Sanders, 2002. "The Impact of Economic Conditions on Participation in Disability Programs: Evidence from the Coal Boom and Bust," American Economic Review, American Economic Association, vol. 92(1), pages 27-50, March.
    6. Chen, Susan & van der Klaauw, Wilbert, 2008. "The work disincentive effects of the disability insurance program in the 1990s," Journal of Econometrics, Elsevier, vol. 142(2), pages 757-784, February.
    7. Duggan, Mark & Singleton, Perry & Song, Jae, 2007. "Aching to retire? The rise in the full retirement age and its impact on the social security disability rolls," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1327-1350, August.
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    Cited by:

    1. Perry Singleton, 2012. "The Effects of Disability Insurance: Evidence From Social Security's Disabled-Widow Program," Center for Policy Research Working Papers 148, Center for Policy Research, Maxwell School, Syracuse University.
    2. Wang, Xintong & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2025. "The effects of Vietnam-era military service on the long-term health of veterans: A bounds analysis," Journal of Health Economics, Elsevier, vol. 101(C).
    3. Courtney Coile & Mark Duggan & Audrey Guo, 2021. "To Work for Yourself, for Others, or Not at All? How Disability Benefits Affect the Employment Decisions of Older Veterans," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(3), pages 686-714, June.
    4. Singleton, Perry, 2024. "Health information and the timing of social security benefit entitlements," Labour Economics, Elsevier, vol. 91(C).
    5. Mark Duggan & Robert Rosenheck & Perry Singleton, 2010. "Federal Policy and the Rise in Disability Enrollment: Evidence for the Veterans Affairs' Disability Compensation Program," Journal of Law and Economics, University of Chicago Press, vol. 53(2), pages 379-398, May.
    6. Perry Singleton, 2009. "The Effective Target of the Social Security Disability Benefits Reform Act of 1984," Center for Policy Research Working Papers 119, Center for Policy Research, Maxwell School, Syracuse University.
    7. Perry Singleton, 2013. "Health Information and Social Security Entitlements," Center for Policy Research Working Papers 164, Center for Policy Research, Maxwell School, Syracuse University.

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