Why Do World War II Veterans Earn More Than Nonveterans? Angrist, Joshua; Krueger, Alan B

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Authors
Angrist, Joshua ; Krueger, Alan B
Appears In
Journal of Labor Economics
Subjects
Veterans -- Compensation and benefits; Income distribution -- Research; Military pensions -- Economic aspects
Audience
Academic; Trade
Summary
World War II veterans earn more than nonveterans in their cohort. We test whether the World War II veteran premium reflects nonrandom selection into the military of men with higher earnings potential. The estimation is based on the fact that from 1942 to 1947 priority for conscription was determined by date of birth. Information on individuals' dates of birth may therefore be used to construct instrumental variables for veteran status. Empirical results from the 1960, 1970, and 1980 censuses, along with two other microdata sets, support a conclusion that World War II veterans earn no more than comparable nonveterans and may well earn less.
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http://trove.nla.gov.au/work/183983
Work ID
183983

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