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Schooling and the Vietnam-Era GI Bill: Evidence from the Draft Lottery

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  • Joshua D. Angrist
  • Stacey H. Chen

Abstract

Draft-lottery estimates of the causal effects of Vietnam-era military service using 2000 census data show marked schooling gains for veterans. We argue that these gains can be attributed to Vietnam veterans' use of the GI Bill rather than draft avoidance behavior. At the same time, draft lottery estimates of the earnings consequences of Vietnam-era service are close to zero in 2000. The earnings and schooling results can be reconciled by a flattening of the age-earnings profile in middle age and a modest economic return to the schooling subsidized by the GI Bill. Other long-run consequences of Vietnam-era service include increases in migration and public sector employment. (JEL H52, I22, I23, J24, J31, J45)

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Journal: Applied Economics.

Volume (Year): 3 (2011)
Issue (Month): 2 (April)
Pages: 96-118

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Handle: RePEc:aea:aejapp:v:3:y:2011:i:2:p:96-118

Note: DOI: 10.1257/app.3.2.96
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Cited by:
  1. 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.
  2. David Card & Ana Rute Cardoso, 2012. "Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 57-93, October.
  3. Peter Siminski & Simon Ville & Alexander Paull, 2013. "Does the Military Train Men to be Violent Criminals? New Evidence from Australia’s Conscription Lotteries," Economics Working Papers wp13-01, School of Economics, University of Wollongong, NSW, Australia.
  4. David Card & Ana Rute Cardoso, 2011. "Can Compulsory Military Service Increase Civilian Wages? Evidence from the Peacetime Draft in Portugal," NBER Working Papers 17694, National Bureau of Economic Research, Inc.
  5. Bauer, Thomas K. & Bender, Stefan & Paloyo, Alfredo R. & Schmidt, Christoph M., 2009. "Evaluating the Labor-Market Effects of Compulsory Military Service," IZA Discussion Papers 4535, Institute for the Study of Labor (IZA).
  6. Peter Siminski & Simon Ville, 2012. "I Was Only Nineteen, 45 Years Ago: What Can we Learn from Australia’s Conscription Lotteries?," Economics Working Papers wp12-06, School of Economics, University of Wollongong, NSW, Australia.
  7. Albæk, Karsten & Leth-Petersen, Søren & le Maire, Daniel & Tranæs, Torben, 2013. "Does Peacetime Military Service Affect Crime?," IZA Discussion Papers 7528, Institute for the Study of Labor (IZA).
  8. Joshua Angrist, 2013. "The Perils of Peer Effects," NBER Working Papers 19774, National Bureau of Economic Research, Inc.

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