New Estimates of the Effect of Unemployment on Enlisted Retention
CENTER FOR NAVAL ANALYSES ALEXANDRIA VA NAVAL PLANNING MANPOWER AND LOGISTICS DIV
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This paper provides new estimates of the effect of unemployment on enlisted retention. Unemployment is found to have a positive effect upon the reenlistment rate for seven of the nine rating groups studied, and a positive effect upon both the extension rate and the total retention rate for all nine rating groups. However, the payelasticities are three to five times as large as the unemployment elasticities, so that decreases in the unemployment rate may be offset by much smaller percentage increase in military pay. Keywords Enlistment, Estimates, Logit model, Mathematical models, Personnel retention.
- Personnel Management and Labor Relations
- Statistics and Probability