Browsing by Subject "ability"

Labor market effects of military service have been a popular topic for economic research, and in a subset of these studies, interactions with elements like race, parental socioeconomic status, and ability have been submitted as considerations. Introducing an Mincer-type empirical model for framing the problem, I undertake a literature survey of studies concerning themselves with such treatment effect heterogeneities, complemented by a brief empirical survey using CPS data. It is found that, whether the overall effect of service is positive or negative, comparatively gains/non-losses in earnings and education tend to accrue to the disadvantaged individuals over advantaged ones. The plurality of studies correspondingly find positive-to-neutral effects along this gradient, although neutral-to-negative findings are also featured. The contexts under study commonly involve notable influence from educational subsidies and draft deferment incentives, but there are some counterfactuals, which however are unable to establish a definite causal mechanism between service and earnings or education. The main findings of the paper should be considered in making adjustments to existing compulsory service policies.