A systematic literature review on military conscription and labor market outcomes

Authors:

  • Peter Bäckström

Publish date: 2018-05-03

Report number: FOI-R--4584--SE

Pages: 23

Written in: Swedish

Keywords:

  • conscription; military service; military draft; labor market outcomes; natural experiments

Abstract

This report presents a systematic literature review on military conscription and labor market outcomes. The review is limited to scientific studies using methods based on natural experiments to deal with methodological challenges associated with selection. The review has been limited to studies that use data from the Nordic countries (excluding Iceland). The studies included in the review find that military conscription can lead to both positive and negative labor market outcomes. In Sweden, officer training during the military service is found to have strong positive effects. Other studies on Swedish data show that the military service as such is associated with negative labor market outcomes for individuals from a lower socioeconomic background. Studies from Denmark suggests that mandatory military training is associated with negative labor market outcomes, especially for high ability individuals. Potential mechanisms for the relationships observed in the studies include delayed entry into the labor market and educational career disruption. In the Swedish context, it appears as if these negative effects were partly offset for individuals that underwent officer training by the acquisition of leadership specific skills. The concentration of individuals from more advantaged social backgrounds into this type of training might explain why effects from military service in Sweden vary with social background. Studies also highlight the role of peer group effects as a potential explanation for both positive and negative effects. However, there are few studies that study the relationship between conscription and labor market outcomes in the Nordic countries, which means that conclusions must be drawn with some caution.