The impact of R.O.C. military service on labor\'s future earnings

• Main Authors: Chuang, Ping-Ju, 莊秉儒
• Other Authors: Yang, Tzu-Ting
• Format: Others
• Language: en_US
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/3d3r77

碩士 === 國立政治大學 === 應用經濟與社會發展英語碩士學位學程(IMES) === 107 === Abstract Aims and objectives: To find out the effect of ROC compulsory military service on labors’ job search and future earnings. Background: In January 2004, government decided to downsize the scale of compulsory servicemen and shorten their length of service from 22 to 20 months. With a service deduction, servicemen are expected to have a longer period of time on finding a job and receive an increase on income. However, the previous researches indicate that the income effect of CMS could be positive or negative and its influence varies across countries. Design and Methods: RD and RD-DID design are conducted in using National Health Insurance Research Database from 2001-2013. Follow-up on servicemen who finished service from January 2003 to June 2005 is delivered in the study and we compare their service term, job search and future income. Results: Servicemen with 1.74 months of deducted service didn’t spend fewer time on job search. Although they accumulated 1.56 more months of working experience 3 years after starting service, the additional experience doesn’t have influence on their income of first job. In addition, there’s no significant evidence suggesting that their income and the fraction of having a job 3 and 10 years after starting service is different between servicemen served for 22 and 20 months. Conclusion: Service deduction affects labors’ future earnings through their job search process. This study suggests that a 2-month service deduction does not have effect on servicemen’s future earnings and the fraction of having a job.