An investigation of the effects of having symptoms of post-traumatic stress disorder (PTSD) on the labor market earnings of reservists in the years following deployment.

Post-Traumatic Stress Disorder and the Earnings of Military Reservists

David S. Loughran, Paul Heaton

ResearchPublished Jul 23, 2013

Cover: Post-Traumatic Stress Disorder and the Earnings of Military Reservists
Download PDF
Additional Downloads

Includes Summary Only; other ebook formats

This report investigates the effects of having symptoms of post-traumatic stress disorder (PTSD) on the labor market earnings of reservists in the years following deployment. Data on more than 315,000 reservists returning from deployments between 2003 and 2006, combined with longitudinal labor market earnings data, indicate that reservists who have symptoms of PTSD do earn substantially less than those who do not experience PTSD, but much of that gap in earnings was apparent prior to deployment. This suggests that characteristics of individuals reporting symptoms of PTSD that typically are not controlled for in empirical studies are responsible for much of the observed difference in earnings. Controlling for such characteristics, the study finds that reservists reporting symptoms of PTSD on average earn up to 6 percent less than they would have earned if they had not had such symptoms in the first four years following deployment. These lower earnings are attributable to higher military separation rates, a concomitant decline in military earnings, and no compensating increase in civilian labor market earnings.

Key Findings

Reservists' Labor Market Outcomes Are Affected by Both PTSD Symptoms and Personal Characteristics

  • Reservists symptomatic of PTSD earn substantially less than average in both their military and civilian employment prior to deployment.
  • Characteristics of reservists correlated with reporting symptoms of PTSD are responsible for much of the observed difference in earnings between those who ultimately report the symptoms at the end of deployment and those who do not.
  • In the first four years following deployment, reservists reporting symptoms of PTSD on average earn up to 6 percent less than they would have earned if they had not had such symptoms. These lower earnings are attributable to higher military separation rates, a concomitant decline in military earnings, and no compensating increase in civilian labor market earnings.

Recommendation

  • Further research is needed on how PTSD and the factors that make individuals susceptible to it affect military careers.

Topics

Document Details

  • Copyright: RAND Corporation
  • Availability: Web-Only
  • Year: 2013
  • Pages: 61
  • Document Number: TR-1006-OSD

Citation

RAND Style Manual
Loughran, David S. and Paul Heaton, Post-Traumatic Stress Disorder and the Earnings of Military Reservists, RAND Corporation, TR-1006-OSD, 2013. As of October 10, 2024: https://www.rand.org/pubs/technical_reports/TR1006.html
Chicago Manual of Style
Loughran, David S. and Paul Heaton, Post-Traumatic Stress Disorder and the Earnings of Military Reservists. Santa Monica, CA: RAND Corporation, 2013. https://www.rand.org/pubs/technical_reports/TR1006.html.
BibTeX RIS

Research conducted by

The research described in this report was prepared for the Office of the Secretary of Defense (OSD). The research was conducted within the RAND National Defense Research Institute, a federally funded research and development center sponsored by OSD, the Joint Staff, the Unified Combatant Commands, the Navy, the Marine Corps, the defense agencies, and the defense Intelligence Community.

This publication is part of the RAND technical report series. RAND technical reports, products of RAND from 2003 to 2011, presented research findings on a topic limited in scope or intended for a narrow audience; discussions of the methodology employed in research; literature reviews, survey instruments, modeling exercises, guidelines for practitioners and research professionals, and supporting documentation; and preliminary findings. All RAND technical reports were subject to rigorous peer review to ensure high standards for research quality and objectivity.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.