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The labor supply of disabled veterans: 1995-2014

Series Title(s):
Center for Retirement Research working paper
Author(s):
Rutledge, Matthew S., author
Sanzenbacher, Geoffrey T., author
Crawford, Caroline V., author
Contributor(s):
Center for Retirement Research at Boston College, issuing body.
Publication:
Chestnut Hill, MA : Center for Retirement Research at Boston College, August 2016
Language(s):
English
Format:
Text
Subject(s):
Disabled Persons -- statistics & numerical data
Employment -- statistics & numerical data
Veterans -- statistics & numerical data
Employment -- trends
Forecasting
Veterans Disability Claims
Humans
United States
Genre(s):
Technical Report
Abstract:
Disabled veterans are less likely to work today than in the past; between 1995 and 2014, the percent of veterans who were working while receiving disability compensation from the Department of Veterans Affairs (VA) dropped from 62 percent to 49 percent. This drop has led the VA-- which liberalized the list of health conditions that qualify veterans for benefits in the early 2000s-- to face the same concern as the Social Security Administration: the proportion of individuals receiving disability income who could work, but do not, has grown. Using the Current Population Survey's Veterans Supplement, this paper finds that employment and labor force participation rates have fallen for disabled veterans only modestly more than for non-disabled veterans. Adjusting for the rapid aging of the disabled veteran population reduces the gap in labor market activity between disabled and non-disabled veterans by 40-70 percent. Although the share of veterans with disability ratings of 50 percent or greater (indicating severe disability) has increased, the most-disabled veterans have not reduced their labor market activity --if anything, their labor supply has actually increased. The results suggest that the decline in employment and labor force participation of disabled veterans is largely a function of age and the increased prevalence of severe disability and not a changing propensity for work. This finding should alleviate concerns that the Veteran's Administration disability system is discouraging employment any differently than in the past.
Copyright:
Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY license. (More information)
Extent:
1 online resource (1 PDF file (26 pages))
Illustrations:
Illustrations
NLM Unique ID:
101705963 (See catalog record)
Series Title(s):
Center for Retirement Research working paper
Author(s):
Rutledge, Matthew S., author
Sanzenbacher, Geoffrey T., author
Crawford, Caroline V., author
Contributor(s):
Center for Retirement Research at Boston College, issuing body.
Publication:
Chestnut Hill, MA : Center for Retirement Research at Boston College, August 2016
Language(s):
English
Format:
Text
Subject(s):
Disabled Persons -- statistics & numerical data
Employment -- statistics & numerical data
Veterans -- statistics & numerical data
Employment -- trends
Forecasting
Veterans Disability Claims
Humans
United States
Genre(s):
Technical Report
Abstract:
Disabled veterans are less likely to work today than in the past; between 1995 and 2014, the percent of veterans who were working while receiving disability compensation from the Department of Veterans Affairs (VA) dropped from 62 percent to 49 percent. This drop has led the VA-- which liberalized the list of health conditions that qualify veterans for benefits in the early 2000s-- to face the same concern as the Social Security Administration: the proportion of individuals receiving disability income who could work, but do not, has grown. Using the Current Population Survey's Veterans Supplement, this paper finds that employment and labor force participation rates have fallen for disabled veterans only modestly more than for non-disabled veterans. Adjusting for the rapid aging of the disabled veteran population reduces the gap in labor market activity between disabled and non-disabled veterans by 40-70 percent. Although the share of veterans with disability ratings of 50 percent or greater (indicating severe disability) has increased, the most-disabled veterans have not reduced their labor market activity --if anything, their labor supply has actually increased. The results suggest that the decline in employment and labor force participation of disabled veterans is largely a function of age and the increased prevalence of severe disability and not a changing propensity for work. This finding should alleviate concerns that the Veteran's Administration disability system is discouraging employment any differently than in the past.
Copyright:
Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY license. (More information)
Extent:
1 online resource (1 PDF file (26 pages))
Illustrations:
Illustrations
NLM Unique ID:
101705963 (See catalog record)