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

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.

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File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow093024.pdf
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Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp10-13.

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Length: 41 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:uow:depec1:wp10-13
Contact details of provider: Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html

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  1. Andrew Leigh, 2005. "Deriving Long-Run Inequality Series from Tax Data," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages S58-S70, 08.
  2. 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 345-49, May.
  3. Kelly Bedard & Olivier Desch�nes, 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.
  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. Keane, Michael P., 2010. "Structural vs. atheoretic approaches to econometrics," Journal of Econometrics, Elsevier, vol. 156(1), pages 3-20, May.
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