The Effect of Military Service on Wealth Accumulation

TitleThe Effect of Military Service on Wealth Accumulation
Publication TypeJournal Article
Year of Publication2006
AuthorsFitzgerald, KG
JournalResearch on Aging
Volume28
Issue1
Pagination56
Call Numberwp_2006/Fitzgerald_RA.pdf
KeywordsEvent History/Life Cycle, Net Worth and Assets
Abstract

This study examines the association between serving active military duty and wealth accumulation. It was expected that those who served active duty would be more likely to accumulate less wealth than nonveterans. Using data from the first wave of the Health and Retirement Study, a sample of 5,800 men was analyzed to determine the relationship between the length of time spent on active military duty and net worth. Multiple regressions suggest that factors commonly associated with wealth accumulation significantly affect net worth. More important, the total number of years served was very significant in that additional years of service decreased net worth. The results were insignificant for respondents who served more than 20 years but suggest that extended military service may positively affect net worth. Overall, the results show that there is an economic disincentive to serve in the military, which may affect the ability of veterans to accumulate wealth and future military recruitment.

Endnote Keywords

Life Events/Net Worth/Wealth Accumulation

Endnote ID

16000

Citation Key7082