The veteran incapacity compensation program (VADC) has grown significantly within the final twenty years, each by way of the full variety of veterans receiving compensation and the common quantity of compensation per recipient. Earlier analysis has recognized modifications within the composition of the veteran inhabitants and within the processes and rules governing profit receipt as main proximate causes of this progress. These explanations are inclined to underemphasize the methods by which circumstances exterior of the system can have an effect on its efficiency and scope. On this dissertation, I discover three of those exterior components.
Within the first chapter, I current descriptive proof on the connection between circumstances in native labor markets and traits in VADC expenditures and participation. These estimates present a modest constructive affiliation between labor market circumstances and expenditures in common occasions, which strengthens within the aftermath of the Nice Recession of 2007–2009. Labor market circumstances are additionally positively related to native modifications within the variety of veterans with incapacity rankings of 50 % or extra.
Within the second chapter, I look at whether or not the unfinished implementation of the Affected person Safety and Inexpensive Care Act (ACA), which inspired adoption of medical insurance by uninsured individuals, affected participation within the VADC program. Utilizing a number of quasi-experimental strategies, I discover that veterans residing in states that didn’t develop their Medicaid program as a part of the ACA have been 0.5 – 1.5 proportion factors extra prone to declare a incapacity score of 50 % or greater than these residing in states that expanded Medicaid. The outcomes point out that Medicaid eligibility and take-up of VA well being care have been key mechanisms driving this impact.
Lastly, within the third chapter I discover whether or not the 2011 enlargement of the Work Alternative Tax Credit score (WOTC) elevated employment charges for veterans experiencing unemployment and veterans with service-connected disabilities, two teams focused by the credit score. I discover no proof that the tax credit score elevated employment charges for service-disabled veterans or veterans with six or extra months out of labor. For veterans residing in households receiving advantages from the Supplemental Diet Help Program (SNAP), the WOTC elevated the employment price by roughly 2.5 proportion factors.
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