Demand for Education and Labour Market Outcomes: Lessons from the Abolition of Compulsory Conscription in France

Eric Maurin and Theodora Xenogiani

No 4946, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In this paper we examine the effects of the abolition of the compulsory conscription in France on the demand for education and labour market outcomes. The reform took place in 1997 and affected all men born after 1979. Before the reform, staying on in education was a way to defer the national service and get access to more interesting forms of the military service. After the reform, these specific incentives to stay on in education have disappeared and the relative cost of education for men has plausibly increased. As a matter of fact, our data reveal that the reform has been followed by a significant decrease in the number of years spent at school by male students, as well as in the proportion of male degree holders. In contrast, the reform had no significant effect on the demand for education for women nor for men of high socio-economic background. We use this exogenous variation in the demand for education to estimate the effect of education on wages as well as on the probability of being in a manual job at the early stage of one?s career.

Keywords: Wages; Demand for education; Natural experiment (search for similar items in EconPapers)
JEL-codes: I20 J24 J31 (search for similar items in EconPapers)
Date: 2005-03
New Economics Papers: this item is included in nep-edu
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Demand for Education and Labor Market Outcomes: Lessons from the Abolition of Compulsory Conscription in France (2007)
Working Paper: Demand for Education and Lbour Market Outcomes: Lessons from the Abolition of Compulsory Conscription in France (2007)
Working Paper: Demand for Education and Lbour Market Outcomes: Lessons from the Abolition of Compulsory Conscription in France (2007)
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