IDEAS home Printed from https://ideas.repec.org/a/bla/ecinqu/v48y2010i4p1008-1031.html
   My bibliography  Save this article

Educational Benefits And Military Service: An Analysis Of Enlistment, Reenlistment, And Veterans' Benefit Usage 1991–2005

Author

Listed:
  • CURTIS J. SIMON
  • SEBASTIAN NEGRUSA
  • JOHN T. WARNER

Abstract

Montgomery GI Bill (MGIB) educational benefits are a prime recruiting tool in today's all‐volunteer military. This paper studies the effects of changes in education benefits using data of the period 1990–2005. Higher benefits lead to higher separation due to both pure incentive effects and by attracting more college‐oriented youth into military service. We deal with potential selection issues by distinguishing between anticipated and unanticipated benefit changes. Higher education benefits are associated with higher separation from the Army and Air Force, but not the other services. A $10,000 increase in MGIB benefits is estimated to increase usage by about 5 percentage points, but the duration of usage is estimated to be insensitive to benefit levels. (JEL H52, I21, J24)

Suggested Citation

  • Curtis J. Simon & Sebastian Negrusa & John T. Warner, 2010. "Educational Benefits And Military Service: An Analysis Of Enlistment, Reenlistment, And Veterans' Benefit Usage 1991–2005," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 1008-1031, October.
    • Handle: RePEc:bla:ecinqu:v:48:y:2010:i:4:p:1008-1031
    DOI: 10.1111/j.1465-7295.2009.00233.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7295.2009.00233.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7295.2009.00233.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Helena Skyt Nielsen & Torben Sørensen & Christopher Taber, 2010. "Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform," NBER Chapters, in: Income Taxation, Trans-Atlantic Public Economics Seminar (TAPES), pages 185-215, National Bureau of Economic Research, Inc.
    2. Neil S. Seftor & NSarah E. Turner, 2002. "Back to School: Federal Student Aid Policy and Adult College Enrollment," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 336-352.
    3. John Bound & Sarah Turner, 2002. "Going to War and Going to College: Did World War II and the G.I. Bill Increase Educational Attainment for Returning Veterans?," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 784-815, October.
    4. Asch, Beth J & Warner, John T, 2001. "A Theory of Compensation and Personnel Policy in Hierarchical Organizations with Application to the United States Military," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 523-562, July.
    5. Susan Dynarski, 2002. "The Behavioral and Distributional Implications of Aid for College," American Economic Review, American Economic Association, vol. 92(2), pages 279-285, May.
    6. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
    7. Susan M. Dynarski, 2003. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," American Economic Review, American Economic Association, vol. 93(1), pages 279-288, March.
    8. repec:mpr:mprres:3250 is not listed on IDEAS
    9. Joshua D. Angrist, 1993. "The Effect of Veterans Benefits on Education and Earnings," ILR Review, Cornell University, ILR School, vol. 46(4), pages 637-652, July.
    10. Marcus Stanley, 2003. "College Education and the Midcentury GI Bills," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 671-708.
    11. McPherson, Michael S & Schapiro, Morton Owen, 1991. "Does Student Aid Affect College Enrollment? New Evidence on a Persistent Controversy," American Economic Review, American Economic Association, vol. 81(1), pages 309-318, March.
    12. Wilbert van der Klaauw, 2002. "Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1249-1287, November.
    13. Hilmer, Michael J., 1998. "Post-secondary fees and the decision to attend a university or a community college," Journal of Public Economics, Elsevier, vol. 67(3), pages 329-348, March.
    14. Dave M. O'Neill, 1977. "Voucher Funding of Training Programs: Evidence from the GI Bill," Journal of Human Resources, University of Wisconsin Press, vol. 12(4), pages 425-445.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Berck & Jonathan Lipow, 2011. "Military Conscription and the (Socially) Optimal Number of Boots on the Ground," Southern Economic Journal, John Wiley & Sons, vol. 78(1), pages 95-106, July.
    2. Torun, Huzeyfe & Tumen, Semih, 2016. "The effects of compulsory military service exemption on education and labor market outcomes: Evidence from a natural experiment," Economics of Education Review, Elsevier, vol. 54(C), pages 16-35.
    3. Andrew Barr, 2015. "From the Battlefield to the Schoolyard: The Short- Term Impact of the Post- 9/11 GI Bill," Journal of Human Resources, University of Wisconsin Press, vol. 50(3), pages 580-613.
    4. Mark Borgschulte & Paco Martorell, 2018. "Paying to Avoid Recession: Using Reenlistment to Estimate the Cost of Unemployment," American Economic Journal: Applied Economics, American Economic Association, vol. 10(3), pages 101-127, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bednar, Steven & Gicheva, Dora, 2013. "Tax benefits for graduate education: Incentives for whom?," Economics of Education Review, Elsevier, vol. 36(C), pages 181-197.
    2. David Deming & Susan Dynarski, 2009. "Into College, Out of Poverty? Policies to Increase the Postsecondary Attainment of the Poor," NBER Working Papers 15387, National Bureau of Economic Research, Inc.
    3. Ehrenberg, R.G.Ronald G., 2004. "Econometric studies of higher education," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 19-37.
    4. Molina, Teresa & Rivadeneyra, Ivan, 2021. "The schooling and labor market effects of eliminating university tuition in Ecuador," Journal of Public Economics, Elsevier, vol. 196(C).
    5. Susan Dynarski, 2008. "Building the Stock of College-Educated Labor," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 576-610.
    6. Avdic, Daniel & Gartell, Marie, 2015. "Working while studying? Student aid design and socioeconomic achievement disparities in higher education," Labour Economics, Elsevier, vol. 33(C), pages 26-40.
    7. Juanna Schrøter Joensen, 2010. "Timing and Incentives: Impacts of Student Aid on Academic Achievement," 2010 Meeting Papers 823, Society for Economic Dynamics.
    8. Waddell, Glen R. & Singell Jr., Larry D., 2011. "Do no-loan policies change the matriculation patterns of low-income students?," Economics of Education Review, Elsevier, vol. 30(2), pages 203-214, April.
    9. Maggie Jones, 2017. "Student Aid And The Distribution Of Educational Attainment," Working Paper 1373, Economics Department, Queen's University.
    10. Richard Murphy & Gill Wyness, 2023. "Testing Means-Tested Aid," Journal of Labor Economics, University of Chicago Press, vol. 41(3), pages 687-727.
    11. Vergolini, Loris & Zanini, Nadir, 2015. "Away, but not too far from home. The effects of financial aid on university enrolment decisions," Economics of Education Review, Elsevier, vol. 49(C), pages 91-109.
    12. Diego Restuccia & Guillaume Vandenbroucke, 2013. "The Evolution Of Education: A Macroeconomic Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(3), pages 915-936, August.
    13. Stephanie Riegg Cellini, 2010. "Financial aid and for-profit colleges: Does aid encourage entry?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(3), pages 526-552.
    14. Helena Skyt Nielsen & Torben Sørensen & Christopher Taber, 2010. "Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 185-215, May.
    15. Gabrielle Fack & Julien Grenet, 2015. "Improving College Access and Success for Low-Income Students: Evidence from a Large Need-Based Grant Program," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 1-34, April.
    16. Viktor Steiner & Katharina Wrohlich, 2012. "Financial Student Aid and Enrollment in Higher Education: New Evidence from Germany," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 124-147, March.
    17. Goodman, Joshua, 2008. "Who merits financial aid?: Massachusetts' Adams Scholarship," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2121-2131, October.
    18. David O Lucca & Taylor Nadauld & Karen Shen, 2019. "Credit Supply and the Rise in College Tuition: Evidence from the Expansion in Federal Student Aid Programs," The Review of Financial Studies, Society for Financial Studies, vol. 32(2), pages 423-466.
    19. Dearden, Lorraine & Fitzsimons, Emla & Wyness, Gill, 2014. "Money for nothing: Estimating the impact of student aid on participation in higher education," Economics of Education Review, Elsevier, vol. 43(C), pages 66-78.
    20. Stephen L. DesJardins & Dennis A. Ahlburg & Brian P. McCall, 2006. "An Integrated Model of Application, Admission, Enrollment, and Financial Aid," The Journal of Higher Education, Taylor & Francis Journals, vol. 77(3), pages 381-429, May.

    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecinqu:v:48:y:2010:i:4:p:1008-1031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.