I examine whether the Armed Forces Qualifications Test (AFQT) is a suitable proxy for human capital skills by testing the hypothesis that those factors most germane to human capital skills acquisition will most affect AFQT score. Using data from the National Longitudinal Survey of the Youth and OLS regression analysis, I find that strict and loose human capital factors are robust determinants of AFQT score, and thus the AFQT is a suitable proxy for human capital skills. However, its use as such requires specification that the AFQT is not a catchall for human capital factors, as it is significantly related to only some human capital factors considered in this study.
Kanarek, Jaret L.
"Examining the AFQT as a Proxy for Human Capital,"
Undergraduate Economic Review: Vol. 11
, Article 8.
Available at: http://digitalcommons.iwu.edu/uer/vol11/iss1/8