EDUCATIONAL BENEFITS AND MILITARY SERVICE: AN ANALYSIS OF ENLISTMENT, REENLISTMENT, AND VETERANS' BENEFIT USAGE 1991–2005*
Abstract
Montgomery GI Bill (MGIB) educational benefits are a prime recruiting tool in today's all‐volunteer military. This paper studies the effects of changes in education benefits using data of the period 1990–2005. Higher benefits lead to higher separation due to both pure incentive effects and by attracting more college‐oriented youth into military service. We deal with potential selection issues by distinguishing between anticipated and unanticipated benefit changes. Higher education benefits are associated with higher separation from the Army and Air Force, but not the other services. A $10,000 increase in MGIB benefits is estimated to increase usage by about 5 percentage points, but the duration of usage is estimated to be insensitive to benefit levels. (JEL H52, I21, J24)
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The enrollment effect per dollar of aid from the Post 9/11 GI Bill is lower than has been found in other contexts.
“Barr (2016) notes that his estimates, along with earlier findings from Simon, Negrusa, and Warner (2010) imply a lower enrollment effect per dollar of aid than has been found in other contexts.”
From College Costs, Financial Aid, and Student Decisions (2022) · cites this paper as Simon, Negrusa, and Warner (2010)
Cites
Bound, J., & Turner, S. (2002) · Journal of Labor Economics · doi:10.1086/342012 · Cited by 374 · see citing works
The Behavioral and Distributional Implications of Aid for College
Dynarski, S. (2002) · American Economic Review · doi:10.1257/000282802320189401 · Cited by 281 · see citing works
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College Costs, Financial Aid, and Student Decisions
Dynarski, S., Page, L., & Scott-Clayton, J. (2022) · National Bureau of Economic Research · doi:10.3386/w30275 · Cited by 56 · see citing works
Fighting for Education: Financial Aid and Degree Attainment
Barr, A. (2019) · Journal of Labor Economics · doi:10.1086/700191 · Cited by 40 · see citing works
- Authors
- SIMON, C. J., NEGRUSA, S., & WARNER, J. T.
- Affiliations
- Clemson University (US)
- RAND Corporation (US)
- Corresponding author
- SIMON, CURTIS J.
- NEGRUSA, SEBASTIAN
- WARNER, JOHN T.
- ORCID
- NEGRUSA, SEBASTIAN
- Venue
- Economic Inquiry
- Publisher
- Wiley
- Published
- 2010-09-14
- Volume
- 48
- Issue
- 4
- Pages
- 1008-1031
- ISSN
- 0043-3640 (ISSN-L)
- 0095-2583
- 1465-7295
- OpenAlex
- W2020920403
- Cited by
- 47
- References
- 2
- Citations by year
- 2025: 2 · 2024: 2 · 2023: 1 · 2022: 2 · 2021: 2 · 2020: 7 · 2019: 2 · 2018: 6 · 2017: 3 · 2016: 5 · 2015: 5 · 2014: 5
- FWCI
- 5.99
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Economic Inquiry (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Education › Education and Military Integration
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Defense, Military, and Policy Studies
- Social Sciences › Political Science and International Relations › Military and Defense Studies
- Keywords
- military recruitment, reenlistment, military separation, college attendance, selection effects, benefit changes, United States Army, United States Air Force
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