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Long-Term Economic Consequences of Vietnam-Era Conscription: Schooling, Experience and Earnings

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  • Joshua D. Angrist

    ()
    (MIT Department of Economics)

  • Stacey H. Chen

    ()
    (Department of Economics, Royal Holloway, University of London)

Abstract

Military service reduces the civilian work experience of veterans but subsidizes their college attendance through the GI Bill. Estimates of veteran effects using the Vietnam-era draft-lottery show a post-service earnings impact close to zero in 2000, coupled with a marked increase in college attendance. Viewed through the lens of a Minser wage equation, these results are explained by a flattening of the experimence profile in middle age and a modest return to GI Bill schooling. Consistent with Roy-type selection into college for veterans, IV estimates of the returns to GI Bill-funded schooling are well below OLS estimates. These results are unchanged in more general models that allow for nonlinear returns to schooling and possible effects of military service on health.

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Bibliographic Info

Paper provided by Department of Economics, Royal Holloway University of London in its series Royal Holloway, University of London: Discussion Papers in Economics with number 09/02.

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Date of creation: Mar 2009
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Handle: RePEc:hol:holodi:0902

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Cited by:
  1. Joshua D. Angrist & Jörn-Steffen Pischke, 2010. "The Credibility Revolution in Empirical Economics: How Better Research Design is taking the Con out of Econometrics," CEP Discussion Papers dp0976, Centre for Economic Performance, LSE.
  2. Sebastian Galiani & Martín A. Rossi & Ernesto Schargrodsky, 2010. "Conscription and Crime: Evidence from the Argentine Draft Lottery," Working Papers 2010.55, Fondazione Eni Enrico Mattei.
  3. Joshua D. Angrist & Stacey H. Chen & Brigham R. Frandsen, 2010. "Did Vietnam Veterans Get Sicker in the 1990s? The Complicated Effects of Military Service on Self-Reported Health," CEP Discussion Papers dp1041, Centre for Economic Performance, LSE.
  4. Chaudhuri, Saraswata & Rose, Elaina, 2009. "Estimating the Veteran Effect with Endogenous Schooling When Instruments Are Potentially Weak," IZA Discussion Papers 4203, Institute for the Study of Labor (IZA).
  5. Bauer, Thomas K. & Bender, Stefan & Paloyo, Alfredo R. & Schmidt, Christoph M., 2009. "Evaluating the labour-market effects of compulsory military service," IAB Discussion Paper 200923, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. Joshua D. Angrist & Stacey H. Chen & Jae Song, 2011. "Long-Term Consequences of Vietnam-Era Conscription: New Estimates Using Social Security Data," American Economic Review, American Economic Association, vol. 101(3), pages 334-38, May.

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