This might induce selection bias if we compare the outcomes of those who served in the military with the outcomes of those that did not serve in the military. In addition, conscripts lose approximately four per cent of their wages by serving in the military.
The proportion of men that received a special exemption status is shown in Figure 2. The concept initially seems surprising for the markedly modern leader.
After this year, the probability of serving in the army returned to the regular level. Section 4 explains our empirical strategy. We find that the system of compulsory military service decreases the proportion of university graduates by 1. We find that the system of military service reduces average societal wages by 1.
However, for Italy, no effect of military conscription on enrolment in tertiary education is found, except for recruits from lower socio-economic backgrounds Di Pietro For instance, individuals with specific — unobserved — skills may have been more successful in exploiting these exemptions than others.
Hence, this policy change creates a transparent counterfactual for regular cohorts that had to serve in the army.