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

Chaudhuri, Saraswata; Rose, Elaina

doi:10.2139/ssrn.1395384

Download This Paper

Open PDF in Browser

Add Paper to My Library

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

28 Pages Posted: 27 Apr 2009

See all articles by Saraswata Chaudhuri

Saraswata Chaudhuri

University of North Carolina (UNC) at Chapel Hill - Department of Economics

Elaina Rose

University of Washington - Department of Economics

There are 2 versions of this paper

Date Written: February 27, 2009

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

JEL Classification: C2, J24

Suggested Citation: Suggested Citation

Chaudhuri, Saraswata and Rose, Elaina, Estimating the Veteran Effect with Endogenous Schooling When Instruments are Potentially Weak (February 27, 2009). Available at SSRN: https://ssrn.com/abstract=1395384 or http://dx.doi.org/10.2139/ssrn.1395384