Schooling and the Vietnam-Era GI Bill: Evidence from the Draft Lottery

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.