Estimating the Veteran Effect with Endogenous Schooling When Instruments Are Potentially Weak

Saraswata Chaudhuri and Elaina Rose ()
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Elaina Rose: University of Washington

No 4203, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Instrumental variables estimates of the effect of military service on subsequent civilian earnings either omit schooling or treat it as exogenous. In a more general setting that also allows for the treatment of schooling as endogenous, we estimate the veteran effect for men who were born between 1944 and 1952 and thus reached draft age during the Vietnam era. We apply a variety of state-of-the-art econometric techniques to gauge the sensitivity of the estimates to the treatment of schooling. We find a significant veteran penalty.

Keywords: veteran effect; weak instruments (search for similar items in EconPapers)
JEL-codes: C2 J24 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2009-06
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (9)

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Working Paper: Estimating the Veteran Effect with Endogenous Schooling when Instruments are Potentially Weak (2009)
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