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Exploring the Veteran-Nonveteran Earnings Differential in the 2005 American Community Survey

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Abstract

Veterans have frequently been found to earn more than nonveterans in the civilian labor force.  Many studies have viewed military service as a “bridging environment” in which, all else equal, veterans should do better economically than their comparably defined nonveteran counterparts because the military provides access to more favorable labor market conditions upon discharge.  Other research suggests military service and training contribute to the human capital of veterans by providing training and experience that would not have been received in the civilian labor market.  Data from the 2005 American Community Survey suggest that veterans have higher median earnings than nonveterans.

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