Arbeitspapier

Opportunity Cost and the Incidence of a Draft Lottery

Military conscription implicitly taxes draftees. Those who would have volunteered at the market wage may be forced to serve for lower wages, and those with higher opportunity costs may be forced to serve regardless, yet little is known about the distribution of this burden. We exploit the Danish draft lottery to estimate the causal effect of military service on labor earnings of young men across the cognitive ability distribution. We find that high ability men who are induced to serve face a 7 percent earnings penalty, whereas low ability men face none. Educational career disruption is an important channel.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2014:10

Klassifikation
Wirtschaft
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Public Sector Labor Markets
Thema
conscription
military service
earnings
draft lottery

Ereignis
Geistige Schöpfung
(wer)
Bingley, Paul
Lundborg, Petter
Vincent Lyk-Jensen, Stéphanie
Ereignis
Veröffentlichung
(wer)
Lund University, School of Economics and Management, Department of Economics
(wo)
Lund
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Bingley, Paul
  • Lundborg, Petter
  • Vincent Lyk-Jensen, Stéphanie
  • Lund University, School of Economics and Management, Department of Economics

Entstanden

  • 2014

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