TY  - RPRT
        AU  - Bingley, Paul
AU  - Lundborg, Petter
AU  - Lyk-Jensen, Stéphanie Vincent
        TI  - Opportunity Cost and the Incidence of a Draft Lottery
        PY  - 2014/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8057
        UR  - https://www.iza.org/publications/dp8057
        AB  - 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 effect of military service on labor earnings of young men across the cognitive ability distribution. We find 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.
        KW  - conscription
KW  - military service
KW  - earnings
KW  - draft lottery
        ER  -