The Socioeconomic Benefits of Active Military Service to Reservists

This article compares the socioeconomic benefits of reservists with prior active military service (PS) and reservists with nonprior service (NPS). The economic theory of investment in human capital, the sociological concept of higher educational attainment, and the social psychological theory of the development of personality traits associated with PS are employed to develop a conceptual framework. The "bridging" argument of greater gains to nonwhite reservists is also tested for data for the All Volunteer Force era. Regression analysis of the Defense Manpower Data Center's Reserve Components Surveys (n = 8,000) revealed that individual and family earnings of PS personnel were higher by 6.8% and 3.5%, respectively, compared to similar earnings of NPS reservists. The results also found some support for the bridging hypothesis in that nonwhite reservists had higher family earnings and higher home ownership relative to white reservists. Limitations of the article for generalizability of the results to all veterans relative to nonveterans are also discussed.