Working Paper: NBER ID: w13411
Authors: Joshua D. Angrist; Stacey H. Chen
Abstract: This paper uses the 2000 Census 1-in-6 sample to look at the long-term impact of Vietnam-era military service. Instrumental Variables estimates using draft-lottery instruments show post-service earnings losses close to zero in 2000, in contrast with earlier results showing substantial earnings losses for white veterans in the 1970s and 1980s. The estimates also point to a marked increase in schooling that appears to be attributable to the Vietnam-era GI Bill. The net wage effects observed in the 2000 data can be explained by a flattening of the experience profile in middle age and a modest return to the increased schooling generated by the GI Bill. Evidence on disability effects is mixed but seems inconsistent with a long-term effect of Vietnam-era military service on health.
Keywords: Vietnam War; conscription; earnings; education; GI Bill
JEL Codes: I18; I22; J24; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| draft lottery numbers (H27) | selection bias (C24) |
| conscription (H56) | diminished earnings (J17) |
| conscription (H56) | educational attainment (I21) |
| GI Bill (I22) | additional years of schooling (I21) |
| military service (H56) | health impacts (I12) |