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The Effects of Compulsory Military Service Exemption on Education and Labor Market Outcomes: Evidence from a Natural Experiment

Huzeyfe Torun () and Semih Tumen ()

Koç University-TUSIAD Economic Research Forum Working Papers from Koc University-TUSIAD Economic Research Forum

Abstract: Based on a law enacted in November 1999, males born on or before December 31st 1972 are given the option to benefit from a paid exemption from the compulsory military service in Turkey. Exploiting this natural experiment, we devise an empirical strategy to estimate the intention-to-treat effect of this paid exemption on the education and labor market outcomes of the individuals in the target group. We find that the paid exemption reform reduces the years of schooling among males who are eligible to benefit from the reform relative to the ineligible ones. In particular, the probability of receiving a college degree or above falls among the eligible males. The result is robust to alternative estimation strategies. We find no reduction in education when we implement the same exercises with (i) data on females and (ii) placebo reform dates. The interpretation is that the reform has reduced the incentives to continue education for the purpose of deferring military service. We also find suggestive evidence that the paid exemption reform reduces the labor income for males in the target group. The reduction in earnings is likely due to the reduction in education.

Keywords: Compulsory military service; draft avoidance; intention to treat; education; earnings. (search for similar items in EconPapers)
JEL-codes: C21 I21 I26 J21 J31 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2015-06
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-lma
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Citations: View citations in EconPapers (2) Track citations by RSS feed

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Related works:
Journal Article: The effects of compulsory military service exemption on education and labor market outcomes: Evidence from a natural experiment (2016) Downloads
Working Paper: The Effects of Compulsory Military Service Exemption on Education and Labor Market Outcomes: Evidence from a Natural Experiment (2016) Downloads
Working Paper: The Effects of Compulsory Military Service Exemption on Education and Labor Market Outcomes: Evidence from a Natural Experiment (2015) Downloads
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