The Impact of Military Service on Labour Market Outcomes

Many young people in Russia when they leaving school, reach the age of conscription into the armed forces - 18 years. For this reason most young men ask themselves the question: "What should I do firstly: to go to the next level of education or serve in the army?" There is no clear answer to this question, so everyone makes a choice based only on his own preferences and capabilities. The purpose of this paper is to show how the salary of an individual depends on the moment he enters the army. Based on a sample from the Russian Longitudinal Monitoring Survey (RLMS), there was made an estimation of the factors affecting the income of young people who served in the army. The results show that the moment of conscription into the military does not have a significant effect on the wages of individuals who have received higher education, but for those who were drafted into the army after graduation from technical school , the income was about 15% higher. Thus, on the basis of this study, we can conclude that if a young person does not want entering a university, then it is more profitable for him to first complete his studies and then go to the army.