The Economic Returns to Military Service

Abstract : The purpose of this study is to assess the extent to which service in the military is a good career investment for young men. Some people believe that the answer is yes, including many young men who are entering the Armed Forces with the anticipation that their training and experiences will enhance their civilian careers. However, many others seem to hold the negative view that skills obtained through military training have little payoff in the civilian labor market. Proponents of the negative view often point to what might be termed low-tech jobs in the Army, and especially in the combat arms, as being especially disadvantageous. The economic returns to military service have been the subject of much research over years. However, this issue has taken on added significance since the institution of the All Volunteer Force (AVF) in 1973 necessitating that the military compete for young people with civilian employers and educational institutions. Unfortunately, earlier research may be of only limited value in assessing the returns to military service during the AVF era since previous research suggests that the returns to military service vary across historical time periods.

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