Enlist or enroll: Credit constraints, college aid, and the military enlistment margin

Andrew Barr

Economics of Education Review, 2016, vol. 51, issue C, 61-78

Abstract: Money for education is a primary motivation for military enlistment. One explanation is that individuals use these benefits to overcome borrowing constraints. I explore this by examining the enlistment response of individuals to additional financial aid that can be used immediately upon high-school graduation or delayed until after military enlistment. I find that the introduction of a merit-aid program decreases the probability that a male enlists in the military by 0.6 percentage points (a 6% reduction), and that these effects are concentrated among applicants who are more likely to qualify for merit scholarships. The reductions are largest in low-income areas, supporting the argument that the effects on enlistment are a result of easing financial constraints.

Keywords: Credit constraints; Financial aid; Military enlistment (search for similar items in EconPapers)
JEL-codes: I22 I23 I24 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:51:y:2016:i:c:p:61-78

DOI: 10.1016/j.econedurev.2015.06.003

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