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.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 8057
- Classification
-
Wirtschaft
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Public Sector Labor Markets
- Subject
-
conscription
military service
earnings
draft lottery
- Event
-
Geistige Schöpfung
- (who)
-
Bingley, Paul
Lundborg, Petter
Vincent Lyk-Jensen, Stéphanie
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bingley, Paul
- Lundborg, Petter
- Vincent Lyk-Jensen, Stéphanie
- Institute for the Study of Labor (IZA)
Time of origin
- 2014
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