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Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal

Year: 2012

Type: article

Abstract: We provide new evidence on the long-term impacts of peacetime conscription, using longitudinal data for Portuguese men born in 1967. These men were inducted at age 21, allowing us to use pre-conscription wages to control for ability differences between conscripts and nonconscripts. We find a significant 4–5 percentage point impact of service on the wages of men with only primary education, coupled with a zero effect for men with higher education. The effect for less-educated men suggests that mandatory service can be a valuable experience for those who might otherwise spend their careers in low-level jobs. (JEL J24, J31, J45)

Source: American Economic Journal Applied Economics

DOI: 10.1257/app.4.4.57

Authors: David Card, Ana Rute Cardoso

Institutions: National Bureau of Economic Research, University of California, Berkeley, Consejo Superior de Investigaciones Científicas, Institut d'Anàlisi Econòmica, Barcelona School of Economics

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions, Reduced inequalities

Open Access status: green

OpenAlex ID: W2019011858