Does Veterans’ Disability Compensation Benefit Receipt Affect the Use of Disability and Social Security Programs?

The Veterans’ Disability Compensation (VADC) program has grown rapidly in recent years, with one in four veterans now receiving benefits. Receipt of VADC benefits may make individuals more or less likely to receive other disability benefits, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), and also may also influence the timing of Social Security claiming. We explore the links between VADC receipt and use of these other benefit programs using county-level administrative data and data from the Current Population Survey and Survey of Income and Program Participation. We find that VADC receipt is associated with greater participation in SSDI and that this relationship has strengthened as the VADC program has grown, particularly for the military service cohorts most affected by the program’s growth. By contrast, VADC receipt is not related to use of the SSI program. There is weaker evidence that VADC receipt is associated with early claiming of Social Security retired worker benefits for Vietnam-era veterans.