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Brothers in Arms: Spillovers from a Draft Lottery

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  • Bingley, Paul

    () (VIVE - The Danish Centre for Applied Social Science)

  • Lundborg, Petter

    () (Lund University)

  • Vincent Lyk-Jensen, Stéphanie

    () (Danish National Centre for Social Research (SFI))

Abstract

Family members tend to have similar labor market outcomes, but measuring the contribution of behavioral spillovers is difficult. To identify spillovers between brothers, we exploit Denmark's largest random assignment – of young men to 8 months of military service – where service status of brothers is correlated but draft lottery numbers are not. We find average spillovers of elder brother service on younger brother service of 7 percent, and as high as 55 percent for closely spaced brothers without sisters. Elder brother military service affects his own occupational choice and his younger brother's service through private information, thereby encouraging volunteering.

Suggested Citation

  • Bingley, Paul & Lundborg, Petter & Vincent Lyk-Jensen, Stéphanie, 2017. "Brothers in Arms: Spillovers from a Draft Lottery," IZA Discussion Papers 10483, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10483
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    Cited by:

    1. Peter, Noemi & Lundborg, Petter & Mikkelsen, Sara & Webbink, Dinand, 2018. "The effect of a sibling’s gender on earnings and family formation," Labour Economics, Elsevier, vol. 54(C), pages 61-78.
    2. Joensen, Juanna Schrøter & Nielsen, Helena Skyt, 2018. "Spillovers in education choice," Journal of Public Economics, Elsevier, vol. 157(C), pages 158-183.

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    More about this item

    Keywords

    peer effect; social interactions; family networks; military service; draft lottery;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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