Long Term Effects of Military Service on the Distribution of Earnings

24 Pages Posted: 22 Aug 2009

See all articles by Brigham R. Frandsen

Brigham R. Frandsen

Brigham Young University - Department of Economics

Date Written: August 1, 2009

Abstract

I estimate the long term effect of military service on quantiles of earnings and education using the Vietnam draft lottery eligibility status as an instrument. I compare the local quantile treatment effect estimator studied by Abadie, Angrist, and Imbens (2002) to the instrumental variables quantile regression technique developed by Chernozhukov and Hansen (2008). Ordinary quantile regression shows a large negative association between service in Vietnam and earnings of white men, with the effect increasing in magnitude for the upper quantiles. Quantile treatment effects estimates show the opposite pattern, although much smaller in magnitude, with a small negative effect at the lower end of the distribution, and a small positive effect at the upper end. This suggests the ordinary quantile result is due to heterogeneous selection effects. The two methods of quantile treatment effects estimation give similar results.

Suggested Citation

Frandsen, Brigham R., Long Term Effects of Military Service on the Distribution of Earnings (August 1, 2009). US Census Bureau Center for Economic Studies Paper No. CES-WP- 09-17, Available at SSRN: https://ssrn.com/abstract=1458631 or http://dx.doi.org/10.2139/ssrn.1458631

Brigham R. Frandsen (Contact Author)

Brigham Young University - Department of Economics ( email )

130 Faculty Office Bldg.
Provo, UT 84602-2363
United States

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