The Impact of Peacekeeping on Post-Deployment Earnings for Swedish Veterans

Abstract

ABSTRACT We study the effect of peacekeeping on post-deployment earnings for military veterans. Using Swedish administrative data, we follow a sample of more than 11,000 veterans who were deployed for the first time during the period 1993-2010 for up to nine years after returning home. To deal with selection bias, we use difference-in-differences propensity score matching based on a rich set of covariates, including measures of individual ability, health and pre-deployment labour market attachment. We find that, overall, veterans’ long run post-deployment earnings are largely unaffected by their service. As such, our findings challenge the notion that Swedish veterans struggle on the labour market. At the same time, we find indications that the zero effect for the full sample hides interesting patterns in the effects from deployment, across sub-groups of veterans. Veterans deployed to Bosnia in the 1990s appear to have suffered a transitory earnings penalty, whereas veterans deployed to Afghanistan in the 2000s, as well as veterans with below average cognitive ability, and veterans with low-educated parents, appear to have earned a long run earnings premium.