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Evaluating the labour-market effects of compulsory military service

Author

Listed:
  • Bauer, Thomas K.

    (IZA ; RUB ; RWI)

  • Bender, Stefan

    (IAB)

  • Paloyo, Alfredo R.

    (RGS Econ ; RUB ; RWI)

  • Schmidt, Christoph M.

    (CEPR London ; RUB ; RWI)

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)

Suggested Citation

  • Bauer, Thomas K. & Bender, Stefan & Paloyo, Alfredo R. & Schmidt, Christoph M., 2009. "Evaluating the labour-market effects of compulsory military service," IAB-Discussion Paper 200923, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:200923
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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. Cousley, Alex & Siminski, Peter & Ville, Simon, 2016. "The Causal Effects of World War II Military Service," IZA Discussion Papers 9725, Institute of Labor Economics (IZA).
    3. 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.
    4. Eric Maurin & Theodora Xenogiani, 2007. "Demand for Education and Labor Market Outcomes: Lessons from the Abolition of Compulsory Conscription in France," Journal of Human Resources, University of Wisconsin Press, vol. 42(4).

    More about this item

    Keywords

    Bundesrepublik Deutschland ; Auswirkungen ; berufliche Reintegration ; Berufsverlauf ; Beschäftigungseffekte ; Bundeswehr ; Einkommenseffekte ; IAB-Beschäftigtenstichprobe ; Lebenseinkommen ; Wehrdienst ; Wehrpflichtige ; 1963-1988;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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