Why Do World War II Veterans Earn More Than Nonveterans?
AbstractWorld War II veterans earn more than nonveterans in their cohort. We test whether the World War II veteran premium reflects nonrandom selection into the military of men with higher earnings potential. The estimation is based on the fact that from 1942 to 1947 priority for conscription was determined by date of birth. Information on individuals' dates of birth may therefore be used to construct instrumental variables for veteran status. Empirical results from the 1960, 1970, and l980 censuses, along with two other microdata sets support a conclusion that World War II veterans earn no more than comparable nonveterans and may well earn less. Copyright 1994 by University of Chicago Press.
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Bibliographic InfoPaper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 634.
Date of creation: Jun 1989
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veteran; World War II; two stage least squares; selectivity bias;
Other versions of this item:
- Angrist, Joshua & Krueger, Alan B, 1994. "Why Do World War II Veterans Earn More Than Nonveterans?," Journal of Labor Economics, University of Chicago Press, vol. 12(1), pages 74-97, January.
- Alan B. Krueger & Joshua D. Angrist, 1989. "Why do World War II Veterans Earn More Than Nonveterans?," NBER Working Papers 2991, National Bureau of Economic Research, Inc.
- G3 - Financial Economics - - Corporate Finance and Governance
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
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- Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, American Economic Association, vol. 80(3), pages 313-36, June.
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185, Massachusetts Institute of Technology (MIT), Department of Economics.
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