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The Impact of Military Training on Veterans' Earnings in the Private Sector: Is there Complimentarity Between Military and Private Training for Veterans
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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This thesis specified and estimated standard human capital earnings models to investigate the effect of military training on the post-military wages of veterans, and the relative payoff of military training for veterans compared to the payoff of civilian training for nonveterans. In addition, the thesis analyzed the complimentarity between military and post-military private sector training and the effect of military training on private sector wages of veterans when occupation variables are included in the models. The National Longitudinal Survey, Youth cohort, for 1983, was used as the source of data. The results of the thesis indicate that military training increases post-military private sector earnings of Veterans by 0.18 percent per week of training, which exceeds the payoff to civilian training for nonveterans of 0.14 percent per week of training. No complimentarity was found between military and post-service private sector training. When type of occupation is included in the models, the wage effect of military training fell to 0.14 percent per week of training. Overall, the thesis demonstrates that the military has been an important source of training during the all volunteer era that is comparable to that received by nonveterans in the private sector.
APPROVED FOR PUBLIC RELEASE