From school to work via military service : an improved transition.

Abstract

Drawing on the implications of human capital theory, the screening hypothesis, and 'dual' labor market theory, the National Longitudinal Survey (NLS) of young men age 14-24 in 1966 was used to test the benefits of military service at civilian job entry. Veterans and nonveterans of the same race were compared in each NLS year from 19 66 to 19 73 on 11 different variables using discriminant analysis. Five variables were selected, from the results of discriminant analyses, and studied longitudinally over the NLS years. Job entry occupation and industrial sector was examined using contingency tables. Veterans received significant and systematic payrate advantages over better educated nonveterans. Veteran advantages were less obvious during the recession and recovery period of 1970-73. Military service may impart subtle labor market benefits such as productivity, experience, and maturity. Recommendations are provided to assist future veteran transition during periods of economic instability.