IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/78096.html
   My bibliography  Save this paper

Military Service and Future Earnings Revisited

Author

Listed:
  • Asali, Muhammad

Abstract

Utilizing particularities in the Israeli laws and regulations, that exempt married women and ultra-orthodox Jewish men from military service, we provide evidence about the effects of compulsory military service on future earnings of veterans. The quasi-experimental estimates suggest that women experience a 4.6 percent military wage premium, while men experience a premium of 11.6 percent. These effects are far smaller than those experienced by minority groups, confirming the common notion in this literature. Finally, the discrepancies we found between the naïve and the consistent estimates suggest that people who voluntarily avoid service are those who face the highest opportunity costs of service.

Suggested Citation

  • Asali, Muhammad, 2017. "Military Service and Future Earnings Revisited," MPRA Paper 78096, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78096
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/78096/1/MPRA_paper_78096.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, American Economic Association, vol. 80(3), pages 313-336, June.
    2. Asali, Muhammad, 2015. "Compulsory Military Service and Future Earnings: Evidence from a Quasi-Experiment," IZA Discussion Papers 8892, Institute of Labor Economics (IZA).
    3. Muhammad Asali, 2010. "Jewish-Arab Wage Gap: What Are The Causes?," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(4), pages 367-380.
    4. P. Routon, 2014. "The Effect of 21st Century Military Service on Civilian Labor and Educational Outcomes," Journal of Labor Research, Springer, vol. 35(1), pages 15-38, March.
    5. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records: Errata," American Economic Review, American Economic Association, vol. 80(5), pages 1284-1286, December.
    6. Barry T. Hirsch & Stephen L. Mehay, 2003. "Evaluating the Labor Market Performance of Veterans Using a Matched Comparison Group Design," Journal of Human Resources, University of Wisconsin Press, vol. 38(3).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Asali, Muhammad, 2015. "Compulsory Military Service and Future Earnings: Evidence from a Quasi-Experiment," IZA Discussion Papers 8892, Institute of Labor Economics (IZA).
    3. Jennifer L. Steele & Peter Buryk & Geoffrey McGovern, 2018. "Student Veterans’ Outcomes by Higher Education Sector: Evidence from Three Cohorts of the Baccalaureate and Beyond," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(7), pages 866-896, November.
    4. Ayan, Davut, 2016. "Unemployment Among the Recent U.S. Veterans," MPRA Paper 117307, University Library of Munich, Germany.
    5. Hou, Benyufang & Liu, Hong & Wang, Sophie Xuefei, 2020. "Returns to military service in off-farm wage employment: Evidence from rural China," China Economic Review, Elsevier, vol. 59(C).
    6. David Card & Ana Rute Cardoso, 2012. "Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 57-93, October.
    7. Chunkai Zhao & Jianhao Guo, 2022. "Are Veterans Happy? Long-term Military Service and the Life Satisfaction of Elderly Individuals in China," Journal of Happiness Studies, Springer, vol. 23(2), pages 477-508, February.
    8. Ayan, Davut, 2016. "The Impact of Military Service on Post-Service Labor Market Performance of Female Veterans: Evidence from the United States," MPRA Paper 117308, University Library of Munich, Germany, revised 2021.
    9. Alberto Davila & Marie T. Mora, 2012. "Terrorism and Patriotism: On the Earnings of US Veterans following September 11, 2001," American Economic Review, American Economic Association, vol. 102(3), pages 261-266, May.
    10. Resul Cesur & Alexander Chesney & Joseph J. Sabia, 2016. "Combat Exposure, Cigarette Consumption, And Substance Use," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1705-1726, July.
    11. David Card & Ana Rute Cardoso, 2011. "Can Compulsory Military Service Increase Civilian Wages? Evidence from the Peacetime Draft in Portugal," NBER Working Papers 17694, National Bureau of Economic Research, Inc.
    12. P. Routon, 2014. "The Effect of 21st Century Military Service on Civilian Labor and Educational Outcomes," Journal of Labor Research, Springer, vol. 35(1), pages 15-38, March.
    13. 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.
    14. Young-Min Ju & Myoung-Jae Lee, 2017. "Control Function Approach for Partly Ordered Endogenous Treatments: Military Rank Premium in Wage," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(6), pages 1176-1194, December.
    15. Dautović, Ernest & Gambacorta, Leonardo & Reghezza, Alessio, 2023. "Supervisory policy stimulus: evidence from the euro area dividend recommendation," Working Paper Series 2796, European Central Bank.
    16. Jinhyun Lee, 2013. "A Consistent Nonparametric Bootstrap Test of Exogeneity," Discussion Paper Series, School of Economics and Finance 201316, School of Economics and Finance, University of St Andrews.
    17. Torun, Huzeyfe, 2019. "Ex-ante labor market effects of compulsory military service," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 90-110.
    18. Poutvaara, Panu & Wagener, Andreas, 2007. "To draft or not to draft? Inefficiency, generational incidence, and political economy of military conscription," European Journal of Political Economy, Elsevier, vol. 23(4), pages 975-987, December.
    19. Shantanu Gupta & Zachary C. Lipton & David Childers, 2021. "Efficient Online Estimation of Causal Effects by Deciding What to Observe," Papers 2108.09265, arXiv.org, revised Oct 2021.
    20. Bagues, Manuel & Roth, Christopher, 2020. "Interregional Contact and National Identity," CAGE Online Working Paper Series 526, Competitive Advantage in the Global Economy (CAGE).

    More about this item

    Keywords

    Compulsory military service; quasi-experiment; early marriage; ultra-orthodox; majority;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:78096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.