In recent years, much of the American public has venerated military veterans as heroes. Despite overwhelmingly positive public attitudes toward veterans, veterans have experienced higher rates of unemployment and underemployment than their nonveteran peers. The current research leverages theory and research on positive stereotypes to shed light on this seeming inconsistency between the heroization of veterans and their heightened rates of unemployment and underemployment. We conceptualize the hero label as a pervasive positive stereotype, and we employ complementary methods and designs (correlational, quasi-experimental, experimental, and mediational) to investigate the consequences and implications of attaching this label to military veterans. We then extend our theorizing to other heroized groups (e.g., firefighters, paramedics, teachers, and social workers). The results across studies suggest that heroization leads the American public to funnel heroized individuals and groups into a limited set of lower paying jobs, organizations, and careers associated with selflessness. This research not only offers insights into an important real-world problem but also offers a first experimental investigation of the consequences and implications of labeling a group of people as heroes. (PsycInfo Database Record (c) 2023 APA, all rights reserved).