Is The Army racially egalitarian? (model this)

This paper links the universe of Army applicants between 1990 and 2011 to their federal tax records and other administrative data and uses two eligibility thresholds in the Armed Forces Qualification Test (AFQT) in a regression discontinuity design to estimate the effects of Army enlistment on earnings and related outcomes. In the 19 years following application, Army service increases average annual earnings by over $$4,000 at both cutoffs. However, whether service increases long-run earnings varies significantly by race. Black servicemembers experience annual gains of $$5,500 to $$15,000 11–19 years after applying while White servicemembers do not experience significant changes. By providing Black servicemembers a stable and well-paying Army job and by opening doors to higher-paid postservice employment, the Army significantly closes the Black-White earnings gap in our sample.

Here is the full paper by Kyle Greenberg, et.al., via the excellent Kevin Lewis.

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