The impact of mandatory military service on labor outcomes. Evidence from Spain

Alternative for the abstract: Using Spanish data, I examine the impact of Military Service (MS) on labor outcomes for men born in 1968 and 1969. To address MS endogeneity, I use a national lottery as an instrumental variable (IV). Results show MS negatively affects various outcomes, depending on ind...

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Main Author: Julio Cáceres Delpiano
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Journal of Applied Economics
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/15140326.2024.2436299
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author Julio Cáceres Delpiano
author_facet Julio Cáceres Delpiano
author_sort Julio Cáceres Delpiano
collection DOAJ
description Alternative for the abstract: Using Spanish data, I examine the impact of Military Service (MS) on labor outcomes for men born in 1968 and 1969. To address MS endogeneity, I use a national lottery as an instrumental variable (IV). Results show MS negatively affects various outcomes, depending on individuals’ work-life status at conscription. For men already in the workforce a year prior, IV estimates reveal significant impacts, particularly for those without mandatory education, notably reducing the likelihood of having a Social Security record. Among those entering the labor market post-lottery, Reduced Form estimates suggest an 8.5 percentage point reduction in employment and a 1.3-year decline in labor market experience. MS also leads to a 20% reduction in earnings, based on conservative estimates. Age-based analysis indicates MS effects extend beyond conscription years, highlighting broader implications beyond incapacitation.
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spelling doaj-art-53ce477efe8345efa4d6e79a24142c6d2025-01-09T23:44:02ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262025-12-0128110.1080/15140326.2024.2436299The impact of mandatory military service on labor outcomes. Evidence from SpainJulio Cáceres Delpiano0Department of Economics, Universidad Carlos III de Madrid, SpainAlternative for the abstract: Using Spanish data, I examine the impact of Military Service (MS) on labor outcomes for men born in 1968 and 1969. To address MS endogeneity, I use a national lottery as an instrumental variable (IV). Results show MS negatively affects various outcomes, depending on individuals’ work-life status at conscription. For men already in the workforce a year prior, IV estimates reveal significant impacts, particularly for those without mandatory education, notably reducing the likelihood of having a Social Security record. Among those entering the labor market post-lottery, Reduced Form estimates suggest an 8.5 percentage point reduction in employment and a 1.3-year decline in labor market experience. MS also leads to a 20% reduction in earnings, based on conservative estimates. Age-based analysis indicates MS effects extend beyond conscription years, highlighting broader implications beyond incapacitation.https://www.tandfonline.com/doi/10.1080/15140326.2024.2436299Military serviceconscription surpluslabor market
spellingShingle Julio Cáceres Delpiano
The impact of mandatory military service on labor outcomes. Evidence from Spain
Journal of Applied Economics
Military service
conscription surplus
labor market
title The impact of mandatory military service on labor outcomes. Evidence from Spain
title_full The impact of mandatory military service on labor outcomes. Evidence from Spain
title_fullStr The impact of mandatory military service on labor outcomes. Evidence from Spain
title_full_unstemmed The impact of mandatory military service on labor outcomes. Evidence from Spain
title_short The impact of mandatory military service on labor outcomes. Evidence from Spain
title_sort impact of mandatory military service on labor outcomes evidence from spain
topic Military service
conscription surplus
labor market
url https://www.tandfonline.com/doi/10.1080/15140326.2024.2436299
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