COEP Replication Package for 'How veteran-nonveteran wage gaps across the wage distribution have evolved over time'

We examine how veteran-nonveteran wage gaps evolved over 1979-2017. Specifically, we estimate wage differentials at each decile across the unconditional wage distribution to allow for heterogeneity in the size and direction of the wage gaps. Low-earning veterans have consistently earned a wage premium, though it has declined in magnitude. High earning veterans earned a premium early on, albeit smaller (in percentage terms) than low earning veterans; the premium disappeared by the 1990s, becoming a wage penalty in recent decades. Decompositions of the estimated gaps reveal that lower returns to education—that worsen over time—contribute to the observed wage gap dynamics.