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Military Draft and Economic Growth in OECD Countries

Author

Listed:
  • Keller, Katarina

    (Susquehanna University)

  • Poutvaara, Panu

    (University of Munich)

  • Wagener, Andreas

    (Leibniz University of Hannover)

Abstract

Economic theory predicts that military conscription is associated with static inefficiencies as well as with dynamic distortions of the accumulation of human and physical capital. Relative to an economy with an all-volunteer force, output levels and growth rates should be lower in countries that rely on a military draft to recruit their army personnel. For OECD countries, we show that military conscription indeed has a statistically significantly negative impact on economic performance.

Suggested Citation

  • Keller, Katarina & Poutvaara, Panu & Wagener, Andreas, 2006. "Military Draft and Economic Growth in OECD Countries," IZA Discussion Papers 2022, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2022
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    References listed on IDEAS

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    More about this item

    Keywords

    growth; augmented Solow model; military draft;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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