The Impact of Mandatory Military Service. Evidence from Spain

Abstract

Using Spanish administrative records, I study the impact of military service on several outcomes for men born between the years 1968 and 1973. To address a concern of endogeneity in military status, a national lottery that helped to allocate a surplus of potential conscripts out of these duties is used as a source of variation. The results reveal an heterogeneous effect on labor market outcomes by educational levels. For individuals with more than elementary education, on the one hand, I observe an increase in the use of unemployment insurance (6pp). For the sample of individuals with at most elementary education, on the other, though I do not observe an effect on extensive margins, an increase in earnings of approximately 24% is estimated. I also study the impact of military service on other margins beyond the labor market. Specifically I find that military service increases the number of children in the household and the probability of holding jobs with some degree of public service (in the public administration, or educational or health services).