An Analysis of Military Disability Compensation

The Departments of Defense and Veterans Affairs offer disability compensation to service members who are injured while serving on active military duty. This research analyzes features of the military disability compensation system and compares the system with benefits available to civilian programs designed to help employees injured in the workplace. The study also compares the civilian labor market outcomes of disabled retirees with those of similar other retirees who are not disabled. It should interest those concerned with military disability compensation issues as well as with the implications of those issues for recruiting and retention.