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Evaluating the labor-market effects of compulsory military service

Journal Article


Abstract


  • We identify the causal effect of compulsory military service on conscripts' subsequent labor-market outcomes by exploiting the regression-discontinuity design of the military draft in Germany during the 1950s. Consistent estimates of military service on lifetime earnings, wages, and days of employment are obtained by comparing men born before July 1, 1937 (the "White Cohort") who were exempted from compulsory military service to men who were born on or shortly after this threshold date and who faced a positive probability of being drafted. We find that the putative earnings advantage and wage premium of those who served in the armed forces vanish when selection effects are taken into account.

UOW Authors


  •   Bauer, Thomas K. (external author)
  •   Bender, Stefan (external author)
  •   Paloyo, Alfredo
  •   Schmidt, Christoph M. (external author)

Publication Date


  • 2012

Geographic Focus


Citation


  • Bauer, T. K., Bender, S., Paloyo, A. R. & Schmidt, C. M. (2012). Evaluating the labor-market effects of compulsory military service. European Economic Review, 56 (4), 814-829.

Scopus Eid


  • 2-s2.0-84860558721

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/232

Number Of Pages


  • 15

Start Page


  • 814

End Page


  • 829

Volume


  • 56

Issue


  • 4

Abstract


  • We identify the causal effect of compulsory military service on conscripts' subsequent labor-market outcomes by exploiting the regression-discontinuity design of the military draft in Germany during the 1950s. Consistent estimates of military service on lifetime earnings, wages, and days of employment are obtained by comparing men born before July 1, 1937 (the "White Cohort") who were exempted from compulsory military service to men who were born on or shortly after this threshold date and who faced a positive probability of being drafted. We find that the putative earnings advantage and wage premium of those who served in the armed forces vanish when selection effects are taken into account.

UOW Authors


  •   Bauer, Thomas K. (external author)
  •   Bender, Stefan (external author)
  •   Paloyo, Alfredo
  •   Schmidt, Christoph M. (external author)

Publication Date


  • 2012

Geographic Focus


Citation


  • Bauer, T. K., Bender, S., Paloyo, A. R. & Schmidt, C. M. (2012). Evaluating the labor-market effects of compulsory military service. European Economic Review, 56 (4), 814-829.

Scopus Eid


  • 2-s2.0-84860558721

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/232

Number Of Pages


  • 15

Start Page


  • 814

End Page


  • 829

Volume


  • 56

Issue


  • 4