Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 760: Civil Returns of Military Training: A Study of Young Men in Sweden

Niklas Hanes (), Erik Norlin () and Magnus Sjöström ()
Additional contact information
Niklas Hanes: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Erik Norlin: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Magnus Sjöström: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

Abstract: The purpose of this paper is to study the effect of military training on earnings for young men in Sweden. The analysis is based on the cohort of men born in 1973. The 1973 cohort was conscripted during a time of rapid change in the Swedish security policy and substantial cutdowns of the armed forces. As a consequence, a relatively large part of the cohort was assigned a service category after the enlistment test but one third of these individuals were never conscripted. We argue that these organizational changes along with the set of important background variables that are available makes it possible to rely on selection on observables. A strong result is that military training has a positive effect on annual earnings at the age of 30 for the group in the private category that subsequently do not obtain an high educational level.

Keywords: Earnings; Conscription; Enlistment test; Military training

JEL-codes: H56; J01; J30

28 pages, November 27, 2008

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