The effect of military enlistment on earnings and education / David S. Loughran ... [and others].

Format:

Book

Contributor:

Loughran, David S., 1969-

Arroyo Center.

United States. Army.

Rand Corporation.

Series:

Technical report (Rand Corporation) ; TR-995-A.

Technical report ; TR-995-A

Language:

English

Subjects (All):

Veterans--United States--Economic conditions.

Veterans.

Veterans--Education--United States--Statistics.

Educational attainment--United States--Statistics.

Educational attainment.

Income--United States--Statistics.

Income.

Veterans--Education.

Economic conditions.

United States.

Genre:

Statistics.

Physical Description:

xxi, 56 pages : illustrations (some color) ; 28 cm.

Place of Publication:

Santa Monica, CA : RAND, 2011.

Summary:

Each year, more than 150,000 young men and women enlist in the active component of the U.S. military. The experience of these enlistees while serving their country undoubtedly influences their long-run labor market outcomes, but exactly how is not well understood. Military service develops technical and other skills and subsidizes the cost of postsecondary education, but military experience does not perfectly substitute for civilian labor market experience. The research reported in this volume estimates, for as many as 18 years following enlistment, the causal effect of military service on labor market and educational outcomes. The authors address the empirical problems associated with the selective nature of military service by restricting their analysis to military applicants, some of whom enlist and some of whom do not, and by controlling for a rich array of applicant characteristics available on the military application record. The authors find that military enlistment increases earnings in both the short and long term: The percentage increase in earnings attributable to enlistment is about 40 percent in the first few years following application and diminishes to about 11 percent 14-18 years following application. Enlistment significantly delays college education in the short run. In the longer run, enlistment slightly increases the likelihood of attaining a two-year college degree, but it also decreases the likelihood of attaining a four-year college degree, especially among higher-aptitude youth. Book jacket.

Contents:

Chapter 1 Introduction 1

Chapter 2 Methods and Data 5

Enlistment, Reenlistment, and Military Compensation 5

Empirical Approach 6

Data 7

Limitations of Our Approach 8

Chapter 3 The Effect of Army Enlistment on Labor Market Earnings 13

Earnings Data 13

Earnings Model Specification 17

Results 17

1989 Applicant Cohort 17

Application Year 19

Armed Forces Qualification Test 22

Race/Ethnicity and Gender 23

In-Service 24

Chapter 4 The Effect of Army Enlistment on Educational Attainment 35

Education Data 35

Education Model Specification 38

Results 39

College Enrollment 39

College Degree Attainment 42

Summary 46

Chapter 5 Conclusion 49.

Notes:

"Prepared for the United States Army."

"Rand Arroyo Center."

Includes bibliographical references.

ISBN:

9780833058232

0833058231

OCLC:

746712320

Online:

http://www.rand.org/content/dam/rand/pubs/technical_reports/2011/RAND_TR995.pdf