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Opportunity Cost and the Incidence of a draft lottery
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Working paper

Opportunity Cost and the Incidence of a draft lottery

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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 efect of military service on labor earnings of young men across the cognitive ability distribution. We fi…nd 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.
Forfattere Paul Bingley, SFI
Petter Lundborg
Stéphanie Lyk-Jensen, SFI
Udgivelsesdato 21.03.2014
Sprog Engelsk
Publikationsnr. WP 02:2014
Forskningsemne

Denne publikation hører under Beskæftigelse og arbejdsmarked, Samfund og sammenhængskraft, Skole og uddannelse
emneord: Arbejdsmarkedet, Skole og uddannelse, Ulighed

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