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Compulsory Military Service and Future Earnings: Evidence from a Natural Experiment

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  • Muhammad Asali

Abstract

Using Israeli census data, and the random assignment of Arab males to military service, this study provides new evidence on the long-term effects of military service on the earnings of veterans. Among Druze men, we find an economically and statistically significant positive effect of 23% on their wages. The unskilled experience a slightly higher premium. The positive effects are large and intensify over time. Skill enhancement and usual human capital accumulation do not explain the positive effect of military service. Networking during service is proposed as a likely explanation.

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  • Muhammad Asali, 2019. "Compulsory Military Service and Future Earnings: Evidence from a Natural Experiment," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(4), pages 402-420, June.
    • Handle: RePEc:taf:defpea:v:30:y:2019:i:4:p:402-420
    DOI: 10.1080/10242694.2017.1327294
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    Cited by:

    1. Christos A. Makridis & Barry T. Hirsch, 2021. "The Labor Market Earnings of Veterans: Is Military Experience More or Less Valuable than Civilian Experience?," Journal of Labor Research, Springer, vol. 42(3), pages 303-333, December.
    2. Muhammad Asali, 2018. "Military service and future earnings: Evidence from an Informed Difference-in-Differences (IDID) approach," Economics Bulletin, AccessEcon, vol. 38(3), pages 1583-1589.

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