Incentivizing Military Service
I asked my Turkish teaching assistant, a first-year Ph.D. student, what he’s doing about compulsory military service. To simplify, he is only liable for six months of service as a university graduate, instead of the usual one year; and if he stays here for three years or more, he can further delay service. When he, or anyone else who lived abroad for three years or more, returns to Turkey, he only has to serve one month as long as he pays the government $7000! Even ignoring the possible disutility of serving the five extra months, all he needs to do is earn $1400/month when he returns to make paying this indemnity worthwhile.
Is this system equitable? Probably not. Does it give the right incentives-steer people into the best uses of their time? Probably. It also avoids discouraging Turks from returning home. But it does create some strange incentives; the lower requirement for university grads has created a tremendous demand for online university degrees. The Turkish equivalents of the University of Phoenix are thriving!