Brothers in Arms: Spillovers from a Draft Lottery

59 Pages Posted: 22 Jan 2017

See all articles by Paul Bingley

Paul Bingley

Aarhus University - National Centre for Register-Based Research

Petter Lundborg

Lund University School of Economics and Management; Tinbergen Institute; IZA Institute of Labor Economics

Stéphanie Vincent Lyk-Jensen

Danish Transportation Research Institute

Date Written: January 2017

Abstract

Family members tend to have similar labor market outcomes, but measuring the contribution of behavioral spillovers is difficult. To identify spillovers between brothers, we exploit Denmark's largest random assignment – of young men to 8 months of military service – where service status of brothers is correlated but draft lottery numbers are not. We find average spillovers of elder brother service on younger brother service of 7 percent, and as high as 55 percent for closely spaced brothers without sisters. Elder brother military service affects his own occupational choice and his younger brother's service through private information, thereby encouraging volunteering.

Keywords: peer effect, social interactions, family networks, military service, draft lottery

JEL Classification: J24, J38, I38, H56

Suggested Citation

Bingley, Paul and Lundborg, Petter and Vincent Lyk-Jensen, Stéphanie, Brothers in Arms: Spillovers from a Draft Lottery (January 2017). IZA Discussion Paper No. 10483, Available at SSRN: https://ssrn.com/abstract=2903105

Paul Bingley (Contact Author)

Aarhus University - National Centre for Register-Based Research ( email )

8000 Århus C, 8210
Denmark

Petter Lundborg

Lund University School of Economics and Management ( email )

P.O Box 7080
Lund
Sweden

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Stéphanie Vincent Lyk-Jensen

Danish Transportation Research Institute

Kongens Lyngby DK-2800
Denmark

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