Draft deferments subsidize yeshiva attendance, yet attendance typically continues long after exemption. A social interaction approach explains these anomalies. Yeshiva attendance signals commitment to the community, which provides mutual insurance to members.
Prohibitions effectively tax real wages, inducing high fertility.
Historically, the incursion of markets into traditional communities produces Ultra-Orthodoxy. Subsidies and rising alternative wages induce dramatic reductions in labor supply and unparalleled increases in fertility, illustrating extreme responses social groups may have to interventions.