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Why Do World War II Veterans Earn More Than Nonveterans?

  • Joshua Angrist
  • Alan Krueger

World 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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File URL: http://arks.princeton.edu/ark:/88435/dsp01b8515n37b
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Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 634.

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Date of creation: Jun 1989
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Handle: RePEc:pri:indrel:dsp01b8515n37b
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  1. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July.
  2. 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.
  3. K. Newey, Whitney, 1985. "Generalized method of moments specification testing," Journal of Econometrics, Elsevier, vol. 29(3), pages 229-256, September.
  4. Jon R. Crane & David A. Wise, 1987. "Military Service and Civilian Earnings of Youths," NBER Chapters, in: Public Sector Payrolls, pages 119-146 National Bureau of Economic Research, Inc.
  5. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
  6. De Tray, Dennis, 1982. "Veteran Status as a Screening Device," American Economic Review, American Economic Association, vol. 72(1), pages 133-42, March.
  7. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
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