Military Service and the Civilian Labor Force

Abstract

The average American military enlistee is likely to differ from the average civilian in employment ambitions and prospects. Current research on veteran wages, however, only examines the effect of military service on average earnings. We employ quantile regression techniques to estimate the effect of military service for the above- and below-average earnings that veterans may experience. We draw data from two longitudinal surveys, one including veterans who served during 1980–1994 and the other including veterans of the early 21st-century wars in Afghanistan and Iraq. For the 21st-century cohort, we find that military service appears to increase wages at and below the median wage but decrease earnings at the high end of the distribution, although these benefits may take several years after service and entry into the civilian labor market to appear.