Women’s role in the military has grown rapidly. Using standard data sets and a special survey of reservists,female veterans are found to have better earnings endowments than nonveterans. Although female veteranshave higher unadjusted earnings than nonveterans, a wage disadvantage is found for white but not nonwhiteveterans following control for measured and unmeasured skills. Low returns to military service may resultfrom historically limited military opportunities for women and difficulty in transferring skills to civilian jobs.
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