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Educational Benefits And Military Service: An Analysis Of Enlistment, Reenlistment, And Veterans' Benefit Usage 1991–2005

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  • CURTIS J. SIMON
  • SEBASTIAN NEGRUSA
  • JOHN T. WARNER

Abstract

Montgomery GI Bill (MGIB) educational benefits are a prime recruiting tool in today's all‐volunteer military. This paper studies the effects of changes in education benefits using data of the period 1990–2005. Higher benefits lead to higher separation due to both pure incentive effects and by attracting more college‐oriented youth into military service. We deal with potential selection issues by distinguishing between anticipated and unanticipated benefit changes. Higher education benefits are associated with higher separation from the Army and Air Force, but not the other services. A $10,000 increase in MGIB benefits is estimated to increase usage by about 5 percentage points, but the duration of usage is estimated to be insensitive to benefit levels. (JEL H52, I21, J24)

Suggested Citation

  • Curtis J. Simon & Sebastian Negrusa & John T. Warner, 2010. "Educational Benefits And Military Service: An Analysis Of Enlistment, Reenlistment, And Veterans' Benefit Usage 1991–2005," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 1008-1031, October.
  • Handle: RePEc:bla:ecinqu:v:48:y:2010:i:4:p:1008-1031
    DOI: 10.1111/j.1465-7295.2009.00233.x
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    References listed on IDEAS

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    Cited by:

    1. Torun, Huzeyfe & Tumen, Semih, 2016. "The effects of compulsory military service exemption on education and labor market outcomes: Evidence from a natural experiment," Economics of Education Review, Elsevier, vol. 54(C), pages 16-35.
    2. Andrew Barr, 2015. "From the Battlefield to the Schoolyard: The Short- Term Impact of the Post- 9/11 GI Bill," Journal of Human Resources, University of Wisconsin Press, vol. 50(3), pages 580-613.
    3. Borgschulte, Mark & Martorell, Paco, 2016. "Paying to Avoid Recession: Using Reenlistment to Estimate the Cost of Unemployment," IZA Discussion Papers 9680, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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