Evaluating the Labor - Market Eff ects of Compulsory Military Service A Regression - Discontinuity Approach # 141 RUHR

نویسندگان

  • Thomas K. Bauer
  • Stefan Bender
  • Alfredo R. Paloyo
  • Christoph M. Schmidt
  • Wolfgang Leininger
  • Daniel Baumgarten
  • Tobias Klein
چکیده

We identify the causal eff ect 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. Unbiased estimates of military service on lifetime earnings, wages, and 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 hence faced a positive probability of being drafted. We fi nd that the putative earnings advantage and wage premium of those who served in the armed forces vanish when selection eff ects are taken into account. JEL Classifi cation: J31

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تاریخ انتشار 2009