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Can a draft induce more human capital investment in the military?

Author

Listed:
  • Tim Perri

    (Department of Economics, Appalachian State U.)

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 since, with a volunteer military, one need not enlist. 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.

Suggested Citation

  • Tim Perri, 2013. "Can a draft induce more human capital investment in the military?," Economics Bulletin, AccessEcon, vol. 33(2), pages 905-913.
    • Handle: RePEc:ebl:ecbull:eb-12-00714
    as

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    References listed on IDEAS

    as
    1. 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.
    2. Katarina Keller & Panu Poutvaara & Andreas Wagener, 2009. "Military Draft And Economic Growth In Oecd Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(5), pages 373-393, October.
    3. 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.
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    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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