Working with the defense force

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Does working with the defense force or for a defense company like Lockheed Martin have good money? What do they look for in their employees? Which path will give me a better chance to get a job; BE in electrical/mech engineering or master/PhD in physics?

Thank you.
 
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Look at the US' expenditure on defense, it should give you a good idea.

From what I've seen from LM's and similar contractor job postings, you have to have US citizenship and also security clearance to even apply for most of their positions. They hire a lot of physics graduates.