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

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Author Info
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)

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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.

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Paper provided by Department of Economics, Royal Holloway University of London in its series Royal Holloway, University of London: Discussion Papers in Economics with number 09/09.

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Date of creation: May 2009
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Handle: RePEc:hol:holodi:0909

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Find related papers by 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 Production
I38 - Health, Education, and Welfare - - Welfare 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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  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. [Downloadable!] (restricted)
  2. Hugo Benitez-Silva & Moshe Buchinsky & Hiu Man Chan & Sofia Cheidvasser & John Rust, 2000. "How Large is the Bias is Self-Reported Disability?," NBER Working Papers 7526, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Daniel Eisenberg & Brian Rowe, 2008. "The Effects of Smoking in Young Adulthood on Smoking and Health Later in Life: Evidence Based on the Vietnam Era Draft Lottery," Working Papers 08-35, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  4. 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. [Downloadable!]
  5. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, American Economic Association, vol. 80(3), pages 313-36, June.
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  6. David H. Autor & Mark G. Duggan, 2003. "The Rise In The Disability Rolls And The Decline In Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 157-205, February. [Downloadable!] (restricted)
  7. Angrist, Joshua & Chen, Stacey, 2008. "Long-Term Economic Consequences of Vietnam-Era Conscription: Schooling, Experience and Earnings," IZA Discussion Papers 3628, Institute for the Study of Labor (IZA). [Downloadable!]
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  8. 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. [Downloadable!] (restricted)
  9. Joshua D. Angrist, 1993. "The effect of veterans' benefits on education and earnings," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 46(4), pages 637-652, July.
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