The long run effects of military service on localities: Evidence from 9/11 attacks

By leveraging differential changes in enlistment rates brought about by the September 11th attacks (9/11), we investigate the effect of being born into a county that experienced a sharp enlistment increase following 9/11. Using restricted microdata, we identify hundreds of “surge” counties in which certain birth-county cohorts exhibit large enlistment responses to 9/11. Individuals born into surge counties and aged 18-24 at 9/11, enlisted at twice the rate of older cohorts, experienced a 10% increase in wages, decreased unemployment, impacts on marriage and fertility, and increases in hospitalization and mortality. Labor market benefits outweigh mortality costs at standard discount rates. Together, these findings represent a first attempt at understanding the spillover effects of enlistment for local communities. • Little research has examined effects on areas sending people to serve in military. • Investigate association with being born into county that experienced enlistment increase. • Individuals born into surge counties, enlisted at twice the rate of older cohorts. • They experienced a 10% increase in wages and decreased unemployment. • Impacts on marriage and fertility, and increases in hospitalization and mortality. • Labor market benefits outweigh mortality costs at standard discount rates.