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Evaluating the labour-market effects of compulsory military service

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  • Bauer, Thomas K.
  • Bender, Stefan

    ()
    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Paloyo, Alfredo R.
  • Schmidt, Christoph M.

Abstract

"We identify the causal effect of compulsory military service on conscripts' subsequent labour-market outcomes by exploiting the regression-discontinuity design of the military draft in Germany during the 1950s. Unbiased estimates of military service on lifetime earnings, wages, and 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 hence 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." (Autorenreferat, IAB-Doku)

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Bibliographic Info

Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200923.

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Length: 34 pages
Date of creation: 10 Nov 2009
Date of revision:
Publication status: published in: European Economic Review, Vol. 56, No. 4 (2012), p. 814-829
Handle: RePEc:iab:iabdpa:200923

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Keywords: Wehrdienst - Auswirkungen; Wehrpflichtige; Beschäftigungseffekte; berufliche Reintegration; Einkommenseffekte; Bundeswehr; IAB-Beschäftigtenstichprobe; Berufsverlauf; Lebenseinkommen;

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Cited by:
  1. Grenet, Julien & Hart, Robert A. & Roberts, J. Elizabeth, 2011. "Above and beyond the call. Long-term real earnings effects of British male military conscription in the post-war years," Labour Economics, Elsevier, vol. 18(2), pages 194-204, April.
  2. Alfredo R. Paloyo, 2010. "Compulsory Military Service in Germany Revisited," Ruhr Economic Papers 0206, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. David Card & Ana Rute Cardoso, 2011. "Can Compulsory Military Service Increase Civilian Wages? Evidence from the Peacetime Draft in Portugal," NBER Working Papers 17694, National Bureau of Economic Research, Inc.
  4. Card, David & Cardoso, Ana Rute, 2011. "Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal," IZA Discussion Papers 5915, Institute for the Study of Labor (IZA).
  5. Peter Siminski & Simon Ville & Alexander Paull, 2013. "Does the Military Train Men to be Violent Criminals? New Evidence from Australia’s Conscription Lotteries," Economics Working Papers wp13-01, School of Economics, University of Wollongong, NSW, Australia.
  6. Di Pietro, Giorgio, 2009. "Military Conscription and University Enrolment: Evidence from Italy," IZA Discussion Papers 4212, Institute for the Study of Labor (IZA).

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