Abstract

Draft-lottery estimates of the consequences of Vietnam-era service using 2000 census data show marked schooling gains for veterans. We argue that these gains can be attributed to Vietnam veterans ’ use of the GI Bill rather than draft avoidance behavior. At the same time, draft lottery estimates of the earnings consequences of Vietnam-era service are close to zero in 2000. These results can be reconciled by a flattening of the age-earnings profile in middle age and a modest economic return to the schooling subsidized by the GI Bill. Other long-run consequences of Vietnam-era service include increased migration and public-sector employment. Economists have long argued that compulsory military service amounts to a hidden tax on soldiers. American conscripts were paid poorly while in the military and lost valuable labor-market experience relative to their civilian counterparts (Walter Oi, 1967). On the other hand, some social scientists see military service as a possible leg up, even for draftees, primarily because of the generous GI Bill schooling benefits available to