Veteran Status and Civilian Earnings

by Dennis N. De Tray


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This research is concerned with the causes of civilian earnings differences between veterans and men with no military service experience. Controlling for such background characteristics as years of schooling, age, and residential location, veterans receive higher market wages, on average, than do men who have never served in the military. The research presented in this report is an analysis of the causes of this "veteran premium," and specifically, an assessment of the fraction of that premium related directly to military service and the fraction due to factors that are correlated with, but not causally related to, service in the military.

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