Exposure to World War II and Its Labor Market Consequences over the Life Cycle

TL;DR

This paper investigates how exposure to World War II affected survivors' labor market outcomes across their life cycle, revealing long-term impacts on employment and retirement patterns.

Contribution

It provides new empirical evidence on the long-term labor market effects of war exposure, highlighting age-specific impacts and gender differences.

Findings

War injuries reduced employment in old age

Former prisoners of war worked longer before retiring

Displaced workers, especially women, often did not return to employment

Abstract

With 70 million dead, World War II remains the most devastating conflict in history. Among the survivors, millions were displaced, returned maimed from the battlefield, or endured years of captivity. We examine the effects of such war exposures on labor market careers, showing that they often become apparent only at certain life stages. While war injuries reduced employment in old age, former prisoners of war prolonged their time in the workforce before retiring. Many displaced workers, especially women, never returned to employment. These responses align with standard life-cycle theory and thus likely hold relevance for other conflicts.