The effect of military service on the subsequent civilian wage of the post-Vietnam veteran

Abstract Each year, thousands of young men enlist in the Armed Forces and after a few years most are discharged and re-enter the civilian labor force. This article investigates the impact of military service, including formal military training and on-the-job experience, on the civilian wage of these veterans. Concentrating on the all voluntary military, we find that the impact of military service on subsequent civilian wages differs with education and race. Non-whites (blacks and hispanics) and high school dropouts benefit from a military stint while college graduates suffer a large wage penalty.

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