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Military Service and Future Earnings Revisited

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  • Muhammad Asali

    (International School of Economics at Tbilisi State University, Tbilisi;)

Abstract

Utilizing particularities in the Israeli laws and regulations, that exempt married women and ultra-orthodox Jewish men from military service, we provide evidence about the effects of compulsory military service on future earnings of veterans. The quasi-experimental estimates suggest that women experience a 4.6 percent military wage premium, while men experience a premium of 11.6 percent. These effects are far smaller than those experienced by minority groups, confirming the common notion in this literature. Finally, the discrepancies we found between the naïve and the consistent estimates suggest that people who voluntarily avoid service are those who face the highest opportunity costs of service.

Suggested Citation

  • Muhammad Asali, 2017. "Military Service and Future Earnings Revisited," Working Papers 005-17 JEL Codes: J24, J3, International School of Economics at TSU, Tbilisi, Republic of Georgia.
    • Handle: RePEc:tbs:wpaper:17-005
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    References listed on IDEAS

    as
    1. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, American Economic Association, vol. 80(3), pages 313-336, June.
    2. Muhammad Asali, 2010. "Jewish-Arab Wage Gap: What Are The Causes?," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(4), pages 367-380.
    3. P. Routon, 2014. "The Effect of 21st Century Military Service on Civilian Labor and Educational Outcomes," Journal of Labor Research, Springer, vol. 35(1), pages 15-38, March.
    4. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records: Errata," American Economic Review, American Economic Association, vol. 80(5), pages 1284-1286, December.
    5. Barry T. Hirsch & Stephen L. Mehay, 2003. "Evaluating the Labor Market Performance of Veterans Using a Matched Comparison Group Design," Journal of Human Resources, University of Wisconsin Press, vol. 38(3).
    6. Asali, Muhammad, 2015. "Compulsory Military Service and Future Earnings: Evidence from a Quasi-Experiment," IZA Discussion Papers 8892, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Compulsory military service; quasi-experiment; early marriage; ultra-orthodox; majority;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • 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

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