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Estimating the Labor Market Impact of Voluntary Military Service Using Social Security Data on Military Applicants

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  • Joshua D. Angrist

Abstract

Effects of military service on veterans' earnings are estimated using Social Security administrative records to fit models with heterogeneous potential outcomes. The first estimation strategy uses matching and regression to compare applicants who enlisted with applicants who did not enlist. The second uses instrumental variables generated by an error in military entrance exams. The empirical results suggest that military service led to higher employment rates for veterans. But in spite of this employment gain, voluntary military service led to only a modest increase in the civilian earnings of nonwhite veterans while actually reducing the civilian earnings of white veterans.

Suggested Citation

  • Joshua D. Angrist, 1998. "Estimating the Labor Market Impact of Voluntary Military Service Using Social Security Data on Military Applicants," Econometrica, Econometric Society, vol. 66(2), pages 249-288, March.
    • Handle: RePEc:ecm:emetrp:v:66:y:1998:i:2:p:249-288
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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