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Do Veterans Face Disparities in the Labor Market—And What Accounts for Them?

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Abstract

We continue our series on military service and consider veterans’ earnings and labor market outcomes. We find that veterans earn more than 12 percent less and are 4 percentage points (18 percent) more likely to be out of the labor force than comparable nonveterans. Interestingly, accounting for veterans’ differences from comparable nonveterans in terms of education and disability status largely explains these labor market differences.

Suggested Citation

  • Rajashri Chakrabarti & Dan Garcia & Maxim L. Pinkovskiy, 2023. "Do Veterans Face Disparities in the Labor Market—And What Accounts for Them?," Liberty Street Economics 20230525b, Federal Reserve Bank of New York.
  • Handle: RePEc:fip:fednls:96215
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    File URL: https://libertystreeteconomics.newyorkfed.org/2023/05/do-veterans-face-disparities-in-the-labor-market-and-what-accounts-for-them/
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    More about this item

    Keywords

    veterans; labor; employment; unemployment; labor force participation; earnings; inequality;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J1 - Labor and Demographic Economics - - Demographic Economics

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