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Evaluating the labor-market effects of compulsory military service

Thomas Bauer (), Stefan Bender (), Alfredo Paloyo and Christoph Schmidt

European Economic Review, 2012, vol. 56, issue 4, 814-829

Abstract: We identify the causal effect of compulsory military service on conscripts’ subsequent labor-market outcomes by exploiting the regression-discontinuity design of the military draft in Germany during the 1950s. Consistent estimates of military service on lifetime earnings, wages, and days of 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 who 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.

Keywords: Germany; Regression-discontinuity design; Conscription; White Cohort (search for similar items in EconPapers)
JEL-codes: J31 (search for similar items in EconPapers)
Date: 2012
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Related works:
Working Paper: Evaluating the labour-market effects of compulsory military service (2009) Downloads
Working Paper: Evaluating the Labor-Market Effects of Compulsory Military Service (2009) Downloads
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