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Can A Draft Induce More Human Capital Investment in the Military?

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  • Timothy Perri

Abstract

We consider the possibility a draft increases the likelihood individuals will invest in human capital in the military. This possibility exists because those drafted have less time to reap the return from human capital investment. A draft is more likely to increase human capital investment in the military the larger the civilian return to human capital investment, the shorter the additional time one must spend in the military if one invests while enlisted, and the larger the cost to an individual of obtaining a deferment. Key Words: Conscription, volunteer military, and human capital

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File URL: http://econ.appstate.edu/RePEc/pdf/wp1115.pdf
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Paper provided by Department of Economics, Appalachian State University in its series Working Papers with number 11-15.

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Date of creation: 2011
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Handle: RePEc:apl:wpaper:11-15

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  1. Keller, Katarina & Poutvaara, Panu & Wagener, Andreas, 2006. "Military Draft and Economic Growth in OECD Countries," IZA Discussion Papers 2022, Institute for the Study of Labor (IZA).
  2. Poutvaara, Panu & Wagener, Andreas, 2007. "To draft or not to draft? Inefficiency, generational incidence, and political economy of military conscription," European Journal of Political Economy, Elsevier, vol. 23(4), pages 975-987, December.
  3. Piero Cipollone & Alfonso Rosolia, 2007. "Social Interactions in High School: Lessons from an Earthquake," American Economic Review, American Economic Association, vol. 97(3), pages 948-965, June.
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