Accession Number : ADA580313


Title :   Is Military Disability Compensation Adequate to Offset Civilian Earnings Losses from Service-Connected Disabilities?


Corporate Author : RAND NATIONAL DEFENSE RESEARCH INST SANTA MONICA CA


Personal Author(s) : Buddin, Richard ; Han, Bing


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a580313.pdf


Report Date : Jan 2012


Pagination or Media Count : 130


Abstract : Casualties in Iraq and Afghanistan have heightened concern about whether disability compensation and programs provide adequate support for military veterans. The Departments of Defense and Veterans Affairs pay about $35 billion in disability compensation to about 3.2 million veterans each year. Their disabilities range from battlefield injuries to health conditions like diabetes and asthma. This research looks at the adequacy of disability compensation to offset the reduction in civilian earnings opportunities that are associated with service-connected disabilities (SCDs). Compensation is based on a schedule of ratings that nominally reflects the average loss in civilian earnings related to each disability. Until recent years, research has not directly compared disability payments with the actual civilian earnings losses of veterans. Our analysis focuses on recent cohorts of veterans who left active military service between fiscal year (FY)1993 and FY2004. We track their civilian earnings and labor force participation (LFP) for up to 12 years, from 1994 through 2005. We follow civilian labor-market outcomes for veterans in these cohorts and compare the labor-market success of veterans with and without SCDs.


Descriptors :   *COMPENSATION , *INCOME , *LOSSES , *PHYSICAL DISABILITIES , AFGHANISTAN , BATTLEFIELDS , BENEFITS , CASUALTIES , INCAPACITATION , IRAQ , LABOR , MILITARY FORCES(UNITED STATES) , MILITARY PERSONNEL , SALARIES , WOUNDS AND INJURIES


Subject Categories : Economics and Cost Analysis
      Medicine and Medical Research
      Military Forces and Organizations


Distribution Statement : APPROVED FOR PUBLIC RELEASE