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The effect of activation on the post-activation civilian earnings of reservists

Author

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  • Loughran, David S.
  • Klerman, Jacob A.

Abstract

To fight wars in Iraq and Afghanistan, the Department of Defense has relied heavily on its reserve components. Among the hardships of activation is the possibility that reservists might suffer an earnings loss following their period of active-duty service due to difficulties reentering the civilian labor market. This paper reports estimates of the effect of activation on the post-activation civilian earnings of reservists employing administrative data on earnings and periods of activation. Our results indicate that reserve activations lead to moderate losses in civilian earnings in the year immediately following activation that disappear and turn to earnings gains in subsequent years.

Suggested Citation

  • Loughran, David S. & Klerman, Jacob A., 2012. "The effect of activation on the post-activation civilian earnings of reservists," Labour Economics, Elsevier, vol. 19(1), pages 18-26.
    • Handle: RePEc:eee:labeco:v:19:y:2012:i:1:p:18-26
    DOI: 10.1016/j.labeco.2011.06.007
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    References listed on IDEAS

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    Cited by:

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    3. Coleen K. Chrisinger, 2017. "Veterans in Workforce Development: Participation and Labor Market Outcomes," Upjohn Working Papers 17-274, W.E. Upjohn Institute for Employment Research.

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    More about this item

    Keywords

    Reservists; Activation; Deployment; Earnings;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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