Military Service and the Civilian Labor Force: Time- and Income-Based Evidence

Abstract: This article explores military and veteran earnings and employment. It suggests that for a 21st century cohort, military service increases the earnings for those in subsequent civilian occupations at and below the median wage, but has negative effect on earnings at the high end of the distribution, and therefore, for more senior civilian occupations. This article posits that military service provides positive opportunities for those who enter military service with few other alternatives and career prospects. These veterans benefit from the experience and skills gained from military service and are thus able to secure employment in civilian occupations at or below the median wage. In contrast, for those seeking jobs with higher earning potential, military service can have a negative impact due to its interrupting effect, which prevents individuals accumulating the necessary work experience and training to make progress along a civilian career trajectory, to reach senior positions.