The effect of military participation on women's wages with double correction for selectivity bias

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Abstract

This study examines the impact of military experience on civilian wages for a sample of NLSY women. There is a negative return to additional years spent in the military suggesting women should not sign up for a second enlistment, but would have higher wages spending those years working in the civilian labor force. The empirical result of positive returns to military participation, yet negative returns to additional years of military experience is consistent with the screening hypothesis. Military participants have a lower rate of return to schooling but a higher return to civilian work experience than their civilian counterparts.

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