The Earnings Effects of Conscription: Lessons from Conscription Reforms in the Netherlands and Italy
Graduation Year
2019
Date of Submission
4-2019
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Matt Delventhal
Terms of Use & License Information
Abstract
In filling their armed forces, many countries rely on conscription, which interrupts conscripts’ labor market participation and accumulation of human capital. Thus, conscription likely affects one’s future earnings. In this paper, I investigate the effects of conscription eligibility in the Netherlands and in Italy on subsequent future earnings. I use a difference-in-difference method, using women as the counterfactual, on Luxembourg Income Study data to calculate the effects of conscription eligibility. I find no systematic earnings effects of conscription. While the existence of educational deferments increase the demand for postsecondary education and hence increase future earnings, factors like military culture, military philosophy, and jobs assigned to conscripts produce different results in the two countries. I find that the Dutch conscription increased (by 6-17%) eligible young men’s earnings while the Italian conscription had no effect or slightly decreased eligible young men’s earnings.
Recommended Citation
Chung, Jay, "The Earnings Effects of Conscription: Lessons from Conscription Reforms in the Netherlands and Italy" (2019). CMC Senior Theses. 2248.
https://scholarship.claremont.edu/cmc_theses/2248
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
