Effects of military base closures on young adults

Abstract This study examines how young adults respond to local labor market disruptions caused by military base closures in Sweden between 1998 and 2005. The results show substantial differences in responses between men and women, reflecting the sharp gender imbalance in military roles. Affected men increase enrollment in tertiary education, particularly when living in proximity to higher education institutions. In contrast, women experience improved labor market outcomes a few years after a closure, with higher earnings and employment rates. This suggests that the structural transformation of the local labor market, following the exit of a major male‐dominated employer, benefits young women as they transition into employment in expanding sectors.