The Effect of Veterans Benefits on Veterans' Education and Earnings
The majority of armed forces veterans make use of the subsidized training and educational benefits provided by the Department of Veterans Affairs. The effect of veterans benefits on educational attainment am civilian earnings is estimated here using the Census Bureau's 1987 Survey of Veterans. Two identification strategies are employed to control for unobserved characteristics that are correlated with educational attainment and benefit usage. First, a fixed effects strategy is implemented by exploiting information on educational attainment at the time of entry to service. Second, instrumental variables estimates are computed, where the excluded instruments are interactions between period of service am educational attainment at entry to service. The effect of veterans benefits on earnings is estimated by decomposing the return to education into a return to the grade completed at entry to service and a return to the post-entry grade increment. Veterans benefits are estimated to increase schooling by roughly 1.4 years and the grade increment is worth roughly 4.3 percent, so that veterans benefits raise annual earnings by approximately 6 percent. This premium appears to accrue primarily to the 77 percent of benefit users who attended college or graduate school.
|Date of creation:||Oct 1990|
|Date of revision:|
|Publication status:||published as Industrial and Labor Relations, July 1993|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 239-267.
- David Card & Alan Krueger, 1990.
"Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States,"
NBER Working Papers
3358, National Bureau of Economic Research, Inc.
- Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
- repec:pri:indrel:254 is not listed on IDEAS
- Joshua Angrist & Alan Krueger, 1989. "Why Do World War II Veterans Earn More Than Nonveterans?," Working Papers 634, Princeton University, Department of Economics, Industrial Relations Section..
- David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
- Stephen L. Mangum & David E. Ball, 1989. "The Transferability of Military-Provided Occupational Training in the Post-Draft Era," ILR Review, Cornell University, ILR School, vol. 42(2), pages 230-245, January.
- repec:pri:indrel:265 is not listed on IDEAS
- repec:fth:prinin:254 is not listed on IDEAS
- repec:fth:prinin:265 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:3492. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.