Long Term Effects of Military Service on the Distribution of Earnings
AbstractI estimate the long term effect of military service on quantiles of earnings and education using the Vietnam draft lottery eligibility status as an instrument. I compare the local quantile treatment effect estimator studied by Abadie, Angrist, and Imbens (2002) to the instrumental variables quantile regression technique developed by Chernozhukov and Hansen (2008). Ordinary quantile regression shows a large negative association between service in Vietnam and earnings of white men, with the effect increasing in magnitude for the upper quantiles. Quantile treatment effects estimates show the opposite pattern, although much smaller in magnitude, with a small negative effect at the lower end of the distribution, and a small positive effect at the upper end. This suggests the ordinary quantile result is due to heterogeneous selection effects. The two methods of quantile treatment effects estimation give similar results.
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Bibliographic InfoPaper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 09-17.
Length: 24 pages
Date of creation: Aug 2009
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-05 (All new papers)
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