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Compulsory Military Service and Future Earnings: Evidence from a Quasi-Experiment

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  • Asali, Muhammad

    (College of Management Academic Studies)

Abstract

Using Israeli census data, this study provides new evidence on the long-term effects of military service on the earnings of veterans. Among Druze men aged 25-34, we find an economically and statistically significant positive effect of 18% on their wages. The respective effect for the 35-44 age group is 23%. The positive effects are large and intensify with time. Skill-enhancement and usual human capital accumulation do not explain the positive effect of military service. Networking and widening the circle of contacts during service are suggested as the most likely explanations.

Suggested Citation

  • Asali, Muhammad, 2015. "Compulsory Military Service and Future Earnings: Evidence from a Quasi-Experiment," IZA Discussion Papers 8892, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8892
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    References listed on IDEAS

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    1. repec:wly:soecon:v:80:2:y:2013:p:345-365 is not listed on IDEAS
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    11. Muhammad Asali, 2010. "Jewish-Arab Wage Gap: What Are The Causes?," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(4), pages 367-380.
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    Cited by:

    1. Muhammad Asali, 2017. "Military Service and Future Earnings Revisited," Working Papers 005-17 JEL Codes: J24, J3, International School of Economics at TSU, Tbilisi, Republic of Georgia.
    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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    More about this item

    Keywords

    future earnings; military service; social capital;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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