Defence Spending and Unemployment in the USA: Disaggregated Analysis by Gender and Age Groups

Abstract

The paper examines the effects of military spending using disaggregated unemployment statistics by gender and age group for the period 1948–2017 in the case of the USA. Findings from quantile regression analysis do not seem to point to any robust evidence supporting the thesis that defence spending quashes unemployment levels. This finding appears to be the case across all groups of unemployed persons. In fact, the results suggest a negative effect on unemployment.