Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal

Abstract

We provide new evidence on the long-term impacts of peacetime conscription, using longitudinal data for Portuguese men born in 1967. These men were inducted at age 21, allowing us to use pre-conscription wages to control for ability differences between conscripts and nonconscripts. We find a significant 4–5 percentage point impact of service on the wages of men with only primary education, coupled with a zero effect for men with higher education. The effect for less-educated men suggests that mandatory service can be a valuable experience for those who might otherwise spend their careers in low-level jobs. (JEL J24, J31, J45)

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