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The Labor Market Impact of the VOW Act on The U.S. Veterans: Evidence from the Current Population Survey

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  • Ayan, Davut

Abstract

Using data from the Current Population Survey, this paper provides evidence on the impact of the “Veterans Opportunity to Work to Hire Heroes Act of 2011 (VOW Act)” on the labor market performance of veterans. The effect of the legislation was evaluated on five outcomes; labor force participation, unemployment, employment, weekly hours of work, and weekly earnings. Differences-in-Differences estimates suggest that veterans without disability increase their labor force participation by around 4 percentage points and this increase leads to higher chances of employment by about 3 percentage points. Female veterans with disability have the highest increase in employment by about 17 percentage points. The findings of this study suggest that the VOW Act had a positive impact on veterans' labor market outcomes. The increase in labor force participation and employment is likely due to the VOW Act's provisions that provide veterans with access to job training, education, and financial assistance. The findings of this study are important for policymakers who are interested in improving the labor market outcomes of veterans.

Suggested Citation

  • Ayan, Davut, 2016. "The Labor Market Impact of the VOW Act on The U.S. Veterans: Evidence from the Current Population Survey," MPRA Paper 117386, University Library of Munich, Germany, revised Jun 2021.
    • Handle: RePEc:pra:mprapa:117386
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    File URL: https://mpra.ub.uni-muenchen.de/117386/1/vow_paper%20may2023.pdf
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    References listed on IDEAS

    as
    1. R. Jason Faberman & Taft Foster, 2013. "Unemployment among recent veterans during the Great Recession," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 37(Q I), pages 1-13.
    2. Sarah Hamersma, 2008. "The effects of an employer subsidy on employment outcomes: A study of the work opportunity and welfare-to-work tax credits," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(3), pages 498-520.
    3. Gary Burtless, 1985. "Are Targeted Wage Subsidies Harmful? Evidence from a Wage Voucher Experiment," ILR Review, Cornell University, ILR School, vol. 39(1), pages 105-114, October.
    4. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(3), pages 1063-1114.
    5. repec:fip:fedhep:y:2013:i:qi:p:1-13:n:vol.37no.1 is not listed on IDEAS
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    More about this item

    Keywords

    wage subsidy; veterans; difference-in-differences; program evaluation; disability;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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