The effects of mid-career military enlistment on civilian career prospects: evidence from the Australian banking industry during World War II

This paper uses personnel records of employees from an Australian bank to analyse the labour market consequences of career interruptions due to voluntary military service during the Second World War. The records contain the employees' career position and pay histories, and pre-war outcomes are used to control for selection bias caused by non-random enlistment. It is shown that, despite losing human capital during the War, upon their return veterans did not face a wage penalty relative to non-volunteers. Finally, evidence from non-wage outcomes suggests that the absence of a wage penalty was a form of positive discrimination by the Bank.