How Much are Iranian Men Willing to Pay for Exemption from Military Service?

Abstract Compulsory military service, due to its timing in the lives of men (at a young age, which is the key period for increasing human capital) and its length (in many cases, about a year and a half to two years), implies a significant cost (explicit or implicit) for them. Individual costs incurred as a result of compulsory military service is an important aspect to consider when measuring the economic and social costs of enforcing conscription. Compulsory military service has been a part of Iranian government policy since 1925. Accordingly, an attempt to estimate the cost for men in Iran is the main subject of this paper. We will estimate the willingness of men to pay for exemption from compulsory military service based on the dichotomous choice contingent valuation model (One-and-One-Half Bounded approach). The mean of willingness to pay is estimated at 1.61 billion Rials (38,000 USD) while the median of willingness to pay is 1.64 billion Rials. A calculation of the median of willingness to pay for sub-groups of respondents shows that individuals with an income of more than 70 million Rials (1670 USD) per month have the highest median of willingness to pay, followed by those with a Ph.D. degree, and finally, undergraduates are individuals with the lowest median of willingness to pay.