Federal tax credit programs encouraging employers to hire disabled veterans are proving effective, according to a new study by the RAND Corporation.

In 2007, Congress added incentives to the Work Opportunity Tax Credit Program (WOTC), offering employers who hired disabled veterans who were recently discharged or unemployed for more than six months up to $4,800 per hire.

The study released Thursday found that the tax credit increased employment among disabled veterans by two percentage points in 2007 and 2008, or approximately 32,000 jobs each year.

“These findings suggest that tax credits may be an effective means to reduce unemployment among disabled veterans,” according to the study’s author, Paul Heaton.

The cost of the 2007 tax credit program is estimated to be $10,000 per job created.

Congress has since enacted two more measures providing tax credits for hiring veterans, including a second expansion of the WOTC in 2009 and the VOW to Hire Heroes Act passed in November.

Before RAND’s study, there had been little empirical research establishing whether these tax credits actually work, according to Heaton.