Search Results

Author: Hasan, Amer
Resulting in 1 citation.
1. Black, Dan A.
Hasan, Amer
Lane, Julia
Report on Task 2: Developing a Deeper Understanding of the Labor Market Dynamics of Recently Discharged Veterans
National Opinion Research Center (NORC), the University of Chicago, May 20, 2007.
Cohort(s): NLSY97
Publisher: National Opinion Research Center - NORC
Keyword(s): Gender Differences; Labor Market Demographics; Labor Market Outcomes; Military Service; Racial Differences; Transition, Job to Job; Transitional Programs; Unemployment; Veterans

In our previous report, "The Labor Market Trajectories of 20-24 Year Old Veterans," we used a well-known dataset, the 1997 National Longitudinal Survey of Youth, to examine the labor market outcomes of 20-24 year old veterans 1, 13, 26 and 39 weeks after they exit the military. That study found that employment rates increase and unemployment rates decrease over time, which provides some evidence that the high reported levels of unemployment result from job search.

Although the previous study shed a great deal of light into the dynamics of the labor market behavior of veterans, it is also important to see whether their outcomes immediately after leaving the military differ from that of their civilian counterparts. The core challenge is that veterans who leave military employment are, by definition, transitioning either from one employment to another, or moving out of the labor market. The appropriate civilian counterparts, then, are individuals undergoing similarly significant labor market transitions, either to another employer or out of the labor market.

Therefore, in this report, we examine how veterans move into employment after leaving the military by comparing them to three sets of civilians. The labor market outcomes of veterans are first compared to those of each civilian comparison group in turn, and then are analyzed relative to the outcomes all three comparison groups. The first comparison group is comprised of 20-24 year old civilians who become unemployed after a relatively long period of continuous employment. The second group consists of civilians who had left a single job that was held for a substantial period of time. The third and final civilian comparison group, which most closely mirrors a Current Population Survey cohort, is made up of a random sample of civilians in a particular week, whose outcomes are compared to those of a group of young veterans in the same week. In this way the outcomes of veterans and civilians can be compared during the same calendar time, which means that they are facing common macroeconomic conditions, such as unemployment rates, job creation, and labor market demand.

Of course, in order to correctly make the comparisons, it is important to control as much as possible for the differences in the characteristics of veterans relative to civilians. Thus, after making straightforward comparisons of veterans to those of the three civilian cohort groups, we assess the labor market outcomes of veterans relative to those of our civilian comparison groups, controlling for important demographic and labor market characteristics, such as race, gender, ability and receipt of unemployment compensation benefits. We apply these controls beginning in Section 4 of this study, entitled "Labor Market Dynamics."

In Section 5, we differentiate veteran outcomes by type of military service, whether in the regular military, National Guard or Reserves. Section 6 analyzes the impact of Unemployment Compensation benefits. Finally, we compare the post-separation earnings of veterans to those of their civilian cohorts.

Our core findings are as follows:

  • Discharged veterans are more likely to be employed than their civilian counterparts. They are also less likely to be out of the labor force.
  • These results are consistent, but differ in magnitude, depending on whether the veterans were regular military or in the National Guard or Reserves. By and large, both employment and labor market participation are higher, and unemployment is lower, for those whose service was in the Guard or Reserves.
  • The financial returns to military service are significant. Former service members earn more than any of the civilian groups to which they were compared.

Bibliography Citation
Black, Dan A., Amer Hasan and Julia Lane. "Report on Task 2: Developing a Deeper Understanding of the Labor Market Dynamics of Recently Discharged Veterans." National Opinion Research Center (NORC), the University of Chicago, May 20, 2007.