Joining up: Did military service in the early all volunteer era affect subsequent civilian income?

Using data from the National Longitudinal Study of Youth, we examine the long-term implications of military service for men’s income. We show strong variations in the effect of military service according to race and education. We do so while considering the effect of military service on the income trajectories of men and including a series of controls for selectivity. We find that while serving in the military, young men from disadvantaged backgrounds earn more than their civilian counterparts. Upon discharge, however, the income premium associated with military service tends to dissipate, and for White veterans with at least a high school degree, an income deficit results.