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Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal

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  • David Card
  • Ana Rute Cardoso

Abstract

We provide new evidence on the long-term impacts of peacetime conscription, using longitudinal data for Portuguese men born in 1967. These men were inducted at age 21, allowing us to use preconscription wages to control for ability differences between conscripts and nonconscripts. We find a significant 4-5 percentage point impact of service on the wages of men with only primary education, coupled with a zero effect for men with higher education. The effect for less-educated men suggests that mandatory service can be a valuable experience for those who might otherwise spend their careers in low-level jobs. (JEL J24, J31, J45)

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  • David Card & Ana Rute Cardoso, 2012. "Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 57-93, October.
  • Handle: RePEc:aea:aejapp:v:4:y:2012:i:4:p:57-93
    Note: DOI: 10.1257/app.4.4.57
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    Cited by:

    1. David Card & Ana Rute Cardoso & Joerg Heining & Patrick Kline, 2018. "Firms and Labor Market Inequality: Evidence and Some Theory," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 13-70.
    2. Majbouri, Mahdi, 2017. "Sir! I'd Rather Go to School, Sir!," IZA Discussion Papers 10787, Institute of Labor Economics (IZA).
    3. Karsten Albæk & Søren Leth‐Petersen & Daniel le Maire & Torben Tranæs, 2017. "Does Peacetime Military Service Affect Crime?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 512-540, July.
    4. Lyk-Jensen, Stéphanie Vincent, 2018. "Does peacetime military service affect crime? New evidence from Denmark’s conscription lotteries," Labour Economics, Elsevier, vol. 52(C), pages 245-262.
    5. Knutsson, Polina, 2018. "Sorting on Unobserved Skills into New Firms," Working Papers 2018:38, Lund University, Department of Economics.
    6. Thomas Koch & Javier Birchenall, 2016. "Taking versus taxing: an analysis of conscription in a private information economy," Public Choice, Springer, vol. 167(3), pages 177-199, June.
    7. Astrid Kunze, 2017. "Types of absence from work and wages of young workers with apprenticeship training," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 51(1), pages 1-14, December.
    8. Torun, Huzeyfe, 2019. "Ex-ante labor market effects of compulsory military service," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 90-110.
    9. Vincent Aidan O'Sullivan, 2016. "The effect of military service on earnings in Britain," Working Papers 125437295, Lancaster University Management School, Economics Department.
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    12. Balestra, Simone, 2018. "Gun prevalence and suicide," Journal of Health Economics, Elsevier, vol. 61(C), pages 163-177.
    13. Ratnikova, Tatiana & Kopytok, Vitovt, 2019. "The effects of compulsory military service on income and wages in Russia," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 55, pages 51-72.
    14. Young-Min Ju & Myoung-Jae Lee, 2017. "Control Function Approach for Partly Ordered Endogenous Treatments: Military Rank Premium in Wage," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(6), pages 1176-1194, December.
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    16. 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.
    17. Peter Siminski & Simon Ville, 2012. "I Was Only Nineteen, 45 Years Ago: What Can we Learn from Australia’s Conscription Lotteries?," Economics Working Papers wp12-06, School of Economics, University of Wollongong, NSW, Australia.
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    19. Etienne Fize & Charles Louis-Sidois, 2020. "Military Service and Political Behavior: Evidence from France," Sciences Po publications info:hdl:2441/45gqdl5l438, Sciences Po.
    20. Gabriela Ertola Navajas & Paula Lopez Villalba & Martín Rossi & Antonia Vazquez, 2019. "The Long-Term Effect of Military Conscription on Personality and Beliefs," Working Papers 132, Universidad de San Andres, Departamento de Economia, revised Sep 2019.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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