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Brothers in Arms: Spillovers from a Draft Lottery

Paul Bingley (), Petter Lundborg () and Vincent Lyk-Jensen, Stéphanie ()
Additional contact information
Paul Bingley: VIVE - The Danish Centre for Applied Social Science
Vincent Lyk-Jensen, Stéphanie: Danish National Centre for Social Research (SFI)

No 10483, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: peer effect; social interactions; family networks; military service; draft lottery (search for similar items in EconPapers)
JEL-codes: J24 J38 I38 H56 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lma
Date: 2017-01
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