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from the Heritage Foundation:

long, but good read, here is an excerpt:

Who Serves in the U.S. Military? The Demographics of Enlisted Troops and Officers
by Shanea Watkins, Ph.D. and James Sherk
Center for Data Analysis Report #08-05

Interactive U.S. map of troop representation levels

Who serves in the active-duty ranks of the U.S. all-volunteer military? Conventional wisdom holds that military service disproportionately attracts minorities and men and women from disadvantaged backgrounds. Many believe that troops enlist because they have few options, not because they want to serve their country. Others believe that the war in Iraq has forced the military to lower its recruiting standards.

Previous Heritage Foundation studies that examined the backgrounds of enlisted personnel refute this interpretation.[1] This report expands on those studies by using an improved methodology to study the demographic characteristics of newly commissioned officers and personnel who enlisted in 2006 and 2007.

Any discussion of troop quality must take place in context. A soldier’s demographic characteristics are of little importance in the military, which values honor, leadership, self-sacrifice, courage, and integrity—qualities that cannot be quantified. Nonetheless, any assessment of the quality of recruits can take place only on the basis of objective criteria. Demographic characteristics are a poor proxy for the quality of those who serve in the armed forces, but they can help to explain which Americans volunteer for military service and why.

Based on an understanding of the limitations of any objective definition of quality, this report compares military volunteers to the civilian population on four demographic characteristics: household income, education level, racial and ethnic background, and regional origin. This report finds that:

1. U.S. military service disproportionately attracts enlisted personnel and officers who do not come from disadvantaged backgrounds. Previous Heritage Foundation research demonstrated that the quality of enlisted troops has increased since the start of the Iraq war. This report demonstrates that the same is true of the officer corps.
2. Members of the all-volunteer military are significantly more likely to come from high-income neighborhoods than from low-income neighborhoods. Only 11 percent of enlisted recruits in 2007 came from the poorest one-fifth (quintile) of neighborhoods, while 25 percent came from the wealthiest quintile. These trends are even more pronounced in the Army Reserve Officer Training Corps (ROTC) program, in which 40 percent of enrollees come from the wealthiest neighborhoods—a number that has increased substantially over the past four years.
3. American soldiers are more educated than their peers. A little more than 1 percent of enlisted personnel lack a high school degree, compared to 21 percent of men 18–24 years old, and 95 percent of officer accessions have at least a bachelor’s degree.
4. Contrary to conventional wisdom, minorities are not overrepresented in military service. Enlisted troops are somewhat more likely to be white or black than their non-military peers. Whites are proportionately represented in the officer corps, and blacks are overrepresented, but their rate of overrepresentation has declined each year from 2004 to 2007. New recruits are also disproportionately likely to come from the South, which is in line with the history of Southern military tradition.