Heterogeneity of the Effects of Compulsory Military Service on Income: Evidence from Russia

Type Working Paper
Title Heterogeneity of the Effects of Compulsory Military Service on Income: Evidence from Russia
Author(s)
Publication (Day/Month/Year) 2013
URL https://www.nes.ru/dataupload/files/people/students/Dostigenia/2012/MT_klemashev.pdf
Abstract
This paper summarizes evidence on the effects of military service on income and wage using individual level data on Russian males from RLMS survey. The main finding is that an additional year of military service decreases the wage of young people on average by 12%. This result was possible to obtain using the legal decrease of the term of compulsory military service in Russia in 2008. I also examined the effect of the whole military service. I found that on average the income of military veterans is lower. However, the difference is not statistically significant. It is significant only for the subpopulation of males who studied at college and were born in city and it is negative. Using IV approach I managed to obtain the result that military service decreases the wage of males of ages between 30 and 45 on average by 30%.

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