IDEAS home Printed from https://ideas.repec.org/p/uow/depec1/wp10-13.html
   My bibliography  Save this paper

Employment Effects of Army Service and Veterans’ Compensation: Evidence from the Australian Vietnam-Era Conscription Lotteries

Author

Abstract

Exploiting the Australian National Service lotteries of 1965-72, I estimate the effect of Army service on employment outcomes. Population data from military personnel records, tax returns, veterans’ compensation records and the Census facilitate a rich and precise analysis, identified by 53,000 compliers. The employment effect is confined to men who served in Vietnam and is very large, at -37 percentage points (95%CI: -32, -43) in 2006. The effect has emerged gradually since the 1990s, and is mirrored by veterans’ Disability Pension effects. These results contrast with those for the USA, possibly reflecting differences in employment incentives associated with veterans’ compensation.

Suggested Citation

  • Siminski, Peter, 2010. "Employment Effects of Army Service and Veterans’ Compensation: Evidence from the Australian Vietnam-Era Conscription Lotteries," Economics Working Papers wp10-13, School of Economics, University of Wollongong, NSW, Australia.
    • Handle: RePEc:uow:depec1:wp10-13
    as

    Download full text from publisher

    File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow093024.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Keane, Michael P., 2010. "Structural vs. atheoretic approaches to econometrics," Journal of Econometrics, Elsevier, vol. 156(1), pages 3-20, May.
    2. Carlos Dobkin & Reza Shabani, 2009. "The Health Effects Of Military Service: Evidence From The Vietnam Draft," Economic Inquiry, Western Economic Association International, vol. 47(1), pages 69-80, January.
    3. Peter Siminski & Simon Ville, 2011. "Long-Run Mortality Effects of Vietnam-Era Army Service: Evidence from Australia's Conscription Lotteries," American Economic Review, American Economic Association, vol. 101(3), pages 345-349, May.
    4. Dora L. Costa & Matthew E. Kahn, 2008. "Health, Stress, and Social Networks: Evidence from Union Army Veterans," NBER Working Papers 14053, National Bureau of Economic Research, Inc.
    5. Kenneth I. Wolpin & Mark R. Rosenzweig, 2000. "Natural "Natural Experiments" in Economics," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 827-874, December.
    6. Kelly Bedard & Olivier Deschênes, 2006. "The Long-Term Impact of Military Service on Health: Evidence from World War II and Korean War Veterans," American Economic Review, American Economic Association, vol. 96(1), pages 176-194, March.
    7. 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 313-336, June.
    8. Lixin Cai & Robert G. Gregory, 2004. "The Labour Market Conditions, Applications and Grants of disability support Pension (DSP) in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(3), pages 374-394, September.
    9. Mark Duggan & Robert Rosenheck & Perry Singleton, 2010. "Federal Policy and the Rise in Disability Enrollment: Evidence for the Veterans Affairs' Disability Compensation Program," Journal of Law and Economics, University of Chicago Press, vol. 53(2), pages 379-398, May.
    10. Andrew Leigh, 2005. "Deriving Long‐Run Inequality Series from Tax Data," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages 58-70, August.
    11. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records: Errata," American Economic Review, American Economic Association, vol. 80(5), pages 1284-1286, December.
    12. Atsushi Inoue & Gary Solon, 2010. "Two-Sample Instrumental Variables Estimators," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 557-561, August.
    13. James Heckman, 1997. "Instrumental Variables: A Study of Implicit Behavioral Assumptions Used in Making Program Evaluations," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 441-462.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Siminski & Simon Ville, 2012. "I Was Only Nineteen, 45 Years Ago: What Can we Learn from Australia’s Conscription Lotteries?," Economics Working Papers wp12-06, School of Economics, University of Wollongong, NSW, Australia.
    2. Hjalmarsson, Randi & Lindquist, Matthew, 2016. "The Causal Effect of Military Conscription on Crime and the Labor Market," CEPR Discussion Papers 11110, C.E.P.R. Discussion Papers.
    3. Seojeong Lee, 2018. "A Consistent Variance Estimator for 2SLS When Instruments Identify Different LATEs," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 36(3), pages 400-410, July.
    4. Simon Ville & Peter Siminski, 2011. "A Fair And Equitable Method Of Recruitment? Conscription By Ballot Into The Australian Army During The Vietnam War," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 51(3), pages 277-296, November.
    5. Brennan Mange & David C. Phillips, 2016. "Career Interruption and Productivity: Evidence from Major League Baseball during the Vietnam War Era," Journal of Human Capital, University of Chicago Press, vol. 10(2), pages 159-185.
    6. Bäckström, Peter & Hanes, Niklas, 2023. "The Impact of Peacekeeping on Post-Deployment Earnings for Swedish Veterans," Umeå Economic Studies 1010, Umeå University, Department of Economics.
    7. Frank Hubers & Dinand Webbink, 2015. "The long-term effects of military conscription on educational attainment and wages," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-16, December.
    8. Mill, Wladislaw & Ebert, Tobias & Berkessel, Jana & Jonsson, Thorsteinn & Lehmann, Sune & Gebauer, Jochen, 2024. "War Causes Religiosity: Gravestone Evidence from the Vietnam Draft Lottery," SocArXiv 9se4r, Center for Open Science.
    9. Kadir Atalay & Garry F. Barrett & Peter Siminski, 2019. "Pension incentives and the joint retirement of couples: evidence from two natural experiments," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(3), pages 735-767, July.
    10. Johnston, David W. & Shields, Michael A. & Siminski, Peter, 2016. "Long-term health effects of Vietnam-era military service: A quasi-experiment using Australian conscription lotteries," Journal of Health Economics, Elsevier, vol. 45(C), pages 12-26.
    11. Stojetz, Wolfgang & Brück, Tilman, 2023. "Exposure to collective gender-based violence causes intimate partner violence," Journal of Development Economics, Elsevier, vol. 164(C).
    12. Peter Siminski & Simon Ville & Alexander Paull, 2016. "Does the military turn men into criminals? New evidence from Australia’s conscription lotteries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 197-218, January.
    13. Jason M. Lindo & Charles Stoecker, 2014. "Drawn Into Violence: Evidence On “What Makes A Criminal” From The Vietnam Draft Lotteries," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 239-258, January.
    14. Peter Siminski & Simon Ville, 2011. "Long-Run Mortality Effects of Vietnam-Era Army Service: Evidence from Australia's Conscription Lotteries," American Economic Review, American Economic Association, vol. 101(3), pages 345-349, May.
    15. Wolfgang Stojetz & Tilman Brück, 2023. "Exposure to collective gender-based violence causes intimate partner violence," HiCN Working Papers 389, Households in Conflict Network.
    16. Patulny, Roger & Siminski, Peter & Mendolia, Silvia, 2015. "The front line of social capital creation – A natural experiment in symbolic interaction," Social Science & Medicine, Elsevier, vol. 125(C), pages 8-18.
    17. Marta Schoch, 2020. "Essays on political economy, inequality and development," Economics PhD Theses 0120, Department of Economics, University of Sussex Business School.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johnston, David W. & Shields, Michael A. & Siminski, Peter, 2016. "Long-term health effects of Vietnam-era military service: A quasi-experiment using Australian conscription lotteries," Journal of Health Economics, Elsevier, vol. 45(C), pages 12-26.
    2. Jason M. Lindo & Charles Stoecker, 2014. "Drawn Into Violence: Evidence On “What Makes A Criminal” From The Vietnam Draft Lotteries," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 239-258, January.
    3. Xintong Wang & Carlos A. Flores & Alfonso Flores-Lagunes, 2020. "The Effects of Vietnam-Era Military Service on the Long-Term Health of Veterans: A Bounds Analysis," Center for Policy Research Working Papers 234, Center for Policy Research, Maxwell School, Syracuse University.
    4. Peter Siminski & Simon Ville & Alexander Paull, 2013. "Does the Military Train Men to be Violent Criminals? New Evidence from Australia’s Conscription Lotteries," Economics Working Papers wp13-01, School of Economics, University of Wollongong, NSW, Australia.
    5. Kadir Atalay & Garry F. Barrett & Peter Siminski, 2019. "Pension incentives and the joint retirement of couples: evidence from two natural experiments," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(3), pages 735-767, July.
    6. Peter Siminski & Simon Ville, 2012. "I Was Only Nineteen, 45 Years Ago: What Can we Learn from Australia’s Conscription Lotteries?," Economics Working Papers wp12-06, School of Economics, University of Wollongong, NSW, Australia.
    7. Joshua D. Angrist & Jörn-Steffen Pischke, 2010. "The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 3-30, Spring.
    8. Hou, Benyufang & Liu, Hong & Wang, Sophie Xuefei, 2020. "Returns to military service in off-farm wage employment: Evidence from rural China," China Economic Review, Elsevier, vol. 59(C).
    9. Eva Deuchert & Martin Huber, 2017. "A Cautionary Tale About Control Variables in IV Estimation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(3), pages 411-425, June.
    10. Paul Bingley & Petter Lundborg & Stéphanie Vincent Lyk-Jensen, 2021. "Brothers in Arms: Spillovers from a Draft Lottery," Journal of Human Resources, University of Wisconsin Press, vol. 56(1), pages 225-268.
    11. David Card & Ana Rute Cardoso, 2012. "Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 57-93, October.
    12. Majbouri, Mahdi, 2017. "Sir! I'd Rather Go to School, Sir!," IZA Discussion Papers 10787, Institute of Labor Economics (IZA).
    13. Chunkai Zhao & Jianhao Guo, 2022. "Are Veterans Happy? Long-term Military Service and the Life Satisfaction of Elderly Individuals in China," Journal of Happiness Studies, Springer, vol. 23(2), pages 477-508, February.
    14. Angrist, Joshua D. & Chen, Stacey H. & Frandsen, Brigham R., 2010. "Did Vietnam veterans get sicker in the 1990s? The complicated effects of military service on self-reported health," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 824-837, December.
    15. Lauren L. Schmitz & Dalton Conley, 2016. "The Effect of Vietnam-Era Conscription and Genetic Potential for Educational Attainment on Schooling Outcomes," NBER Working Papers 22393, National Bureau of Economic Research, Inc.
    16. Chris Rohlfs, 2010. "Does Combat Exposure Make You a More Violent or Criminal Person? Evidence from the Vietnam Draft," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).
    17. 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.
    18. Joshua D. Angrist & Stacey H. Chen, 2007. "Long-term consequences of vietnam-era conscription: schooling, experience, and earnings," NBER Working Papers 13411, National Bureau of Economic Research, Inc.
    19. Rabbitt, Matthew P. & Smith, Michael D., 2021. "Food Insecurity Among Working-Age Veterans," USDA Miscellaneous 311332, United States Department of Agriculture.
    20. Patulny, Roger & Siminski, Peter & Mendolia, Silvia, 2015. "The front line of social capital creation – A natural experiment in symbolic interaction," Social Science & Medicine, Elsevier, vol. 125(C), pages 8-18.

    More about this item

    Keywords

    Vietnam veterans; employment; natural experiment; Australia; conscription;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uow:depec1:wp10-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Siminski (email available below). General contact details of provider: https://edirc.repec.org/data/deuowau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.