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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
    as

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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. 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.
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    4. 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.
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    Full references (including those not matched with items 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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