Examining the Distributional Effects of Military Service on Earnings: A Test of Initial Dominance
AbstractExisting empirical evidence suggests that the effects of Vietnam veteran status on earnings in the decade-and-a-half following service may be concentrated in the lower tail of the earnings distribution. Motivated by this evidence, we develop a formal statistical procedure which is specifically designed to test for lower tail dominance in the distributions of earnings. When applied to the same data as in previous studies, the test reveals that the distribution of earnings for veterans is indeed dominated by the distribution of earnings for non-veterans up to $12,610 (in 1978 dollars), thereby indicating that there was higher social welfare and lower poverty experienced by non-veterans in the decade-and-a-half following military service.
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Bibliographic InfoPaper provided by Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 1111.
Date of creation: Sep 2011
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Web page: http://www.vanderbilt.edu/econ/wparchive/index.html
Treatment effect; Earnings; Hypothesis test; Stochastic dominance; Initial dominance; Crossing point; Causal effect;
Other versions of this item:
- Christopher J. Bennett & Ričardas Zitikis, 2013. "Examining the Distributional Effects of Military Service on Earnings: A Test of Initial Dominance," Journal of Business & Economic Statistics, American Statistical Association, vol. 31(1), pages 1-15, January.
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
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