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DID VIETNAM VETERANS GET SICKER IN THE 1990s? THE COMPLICATED EFFECTS OF MILITARY SERVICE ON SELF-REPORTED HEALTH

Author

Listed:
  • Joshua D. Angrist

    (MIT Department of Economics)

  • Stacey H. Chen

    (Department of Economics, Royal Holloway University of London)

  • Brigham R. Frandsen

    (MIT Department of Economics)

Abstract

The veterans disability compensation (VDC) program, which provides a monthly stipend to disabled veterans, is the third largest American disability insurance program. Since the late 1990s, VDC growth has been driven primarily by an increase in claims from Vietnam veterans, raising concerns about costs as well as health. We use the draft lottery to study the long-term effects of Vietnam-era military service on health and work in the 2000 Census. These estimates show no significant overall effects on employment or work-related disability status, with a small effect on non-work-related disability for whites. On the other hand, estimates for white men with low earnings potential show a large negative impact on employment and a marked increase in non-work-related disability rates. The differential impact of Vietnam-era service on low-skill men cannot be explained by more combat or war-theatre exposure for the least educated, leaving the relative attractiveness of VDC for less skilled men and the work disincentives embedded in the VDC system as a likely explanation.

Suggested Citation

  • Joshua D. Angrist & Stacey H. Chen & Brigham R. Frandsen, 2009. "DID VIETNAM VETERANS GET SICKER IN THE 1990s? THE COMPLICATED EFFECTS OF MILITARY SERVICE ON SELF-REPORTED HEALTH," Royal Holloway, University of London: Discussion Papers in Economics 09/09, Department of Economics, Royal Holloway University of London.
    • Handle: RePEc:hol:holodi:0909
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    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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