Absence of conflict of interest.
Citation
Coile, C., Duggan, M., & Guo, A. (2016). To work for yourself, for others, or not at all? How disability benefits affect the employment decisions of older veterans. Unpublished manuscript.
Highlights
- The study examined the impact of a 2001 expansion in eligibility for Disability Compensation (DC) to cover type 2 diabetes for Vietnam-era veterans on their employment, earnings, and public benefit receipt.
- The authors estimated statistical models to compare outcomes among male Vietnam-era veterans who did and did not serve with on the ground using data from the Veterans Supplement to the Current Population Survey from 1995 to 2015.
- The study found that the expansion of eligibility for DC was associated with greater receipt of DC, a lower likelihood of working for others, and a greater likelihood of self-employment by on-the-ground veterans compared with those veterans who did not serve on the ground. The study did not find a relationship between the expansion and earnings.
- The quality of causal evidence presented in this report is moderate because it was based on a well-implemented nonexperimental design. This means we are somewhat confident that the estimated effects are attributable to changes in eligibility for DC and not to other factors.
Intervention Examined
DC
Features of the Intervention
DC provides payments to veterans who have had medical conditions caused or aggravated by their military service. Veterans can apply through the Department of Veterans Affairs (VA) to determine their eligibility. A VA rating board reviews and evaluates each claim to confirm whether the medical condition is connected to the service and, if so, assigns a severity rating that will help to determine the DC benefit amount. DC is a tax-free benefit available to the veterans throughout the remainder of their lives. In addition, veterans can collect other disability-related benefits such as Social Security Disability Insurance.
DC has been available for many years to cover a range of defined medical conditions, and this range has expanded since 2001. In 2001, coverage was extended to type 2 diabetes for Vietnam-era veterans who were on the ground during the conflict. In 2010, coverage was extended to conditions including ischemic heart disease, Parkinson’s disease, and B-cell leukemia for these veterans. As of 2010, coverage was extended to chronic fatigue, fibromyalgia, post-traumatic stress disorder, unexplained illnesses linked to environmental exposure, and other conditions for Gulf War―era veterans. As a result of these eligibility expansions, participation in DC has grown from about 9 percent of veterans in 2001 to 19 percent in 2015.
Features of the Study
The authors conducted a nonexperimental analysis to compare outcomes of male Vietnam-era veterans from all service branches who did and did not serve with on the ground. Those who served on the ground and had type 2 diabetes were eligible for DC starting in 2001, and those not on the ground might have received disability assistance through other programs, such as Social Security Disability Insurance, but would not be eligible for DC coverage for type 2 diabetes. Using data on 30,873 veterans from the Veterans Supplement to the Current Population Survey from 1995 to 2015, the authors compared medium-term outcomes from 2003 to 2009 and long-term outcomes from 2010 to 2015, accounting for differences in age and race. The sample was restricted to men born from 1944 to 1953 who were ages 42 to 71 during the years examined.
Of the veterans in the sample who served on the ground, 88 percent were White and 35 percent had a college degree. Of the veterans in the sample who were not on the ground or did not serve directly in the conflict, 90 percent were White and 40 percent had a college degree.
Findings
Employment
- The study found no statistical relationship between the expansion of DC eligibility in 2001 and being in the labor force. The study found a negative statistical relationship between the expansion and working for others both 2 to 8 years later and 9 to 14 years later as well as a positive relationship with self-employment 9 to 14 years later.
Earnings and wages
- The study found no statistical relationship between the expansion of DC eligibility in 2001 and earnings.
Public benefit receipt
- The study found a positive relationship between the expansion of DC eligibility in 2001 and receipt of DC 2 to 8 years later and 9 to 14 years later.
Considerations for Interpreting the Findings
The authors noted that DC receipt was higher among Vietnam-era veterans who were on the ground compared with those not on the ground, which could be related to poor health resulting from the on-the-ground veterans’ time in conflict.
Causal Evidence Rating
The quality of causal evidence presented in this report is moderate because it was based on a well-implemented nonexperimental design. This means we are somewhat confident that the estimated effects are attributable to changes in eligibility for DC and not to other factors.