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Estimating the Labor Market Impact of Voluntary Military Service Using Social Security Data on Military Applicants

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Author Info
Joshua D. Angrist

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Abstract

Effects of military service on veterans' earnings are estimated using Social Security administrative records to fit models with heterogeneous potential outcomes. The first estimation strategy uses matching and regression to compare applicants who enlisted with applicants who did not enlist. The second uses instrumental variables generated by an error in military entrance exams. The empirical results suggest that military service led to higher employment rates for veterans. But in spite of this employment gain, voluntary military service led to only a modest increase in the civilian earnings of nonwhite veterans while actually reducing the civilian earnings of white veterans.

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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 66 (1998)
Issue (Month): 2 (March)
Pages: 249-288
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Handle: RePEc:ecm:emetrp:v:66:y:1998:i:2:p:249-288

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bryant, Richard R. & Samaranayake, V. A. & Wilhite, Allen, 1993. "The effect of military service on the subsequent civilian wage of the post-Vietnam veteran," The Quarterly Review of Economics and Finance, Elsevier, vol. 33(1), pages 15-31. [Downloadable!] (restricted)
  2. Newey, Whitney K, 1990. "Efficient Instrumental Variables Estimation of Nonlinear Models," Econometrica, Econometric Society, vol. 58(4), pages 809-37, July. [Downloadable!] (restricted)
  3. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March. [Downloadable!] (restricted)
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  4. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May. [Downloadable!] (restricted)
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  5. Stephen L. Mangum & David E. Ball, 1989. "The transferability of military-provided occupational training in the post-draft era," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 42(2), pages 230-245, January.
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