Interpretation and Implications of Previous Sea Pay Estimates
CENTER FOR NAVAL ANALYSES ALEXANDRIA VA RESOURCE ANALYSIS DIV
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In this study, we considered three related issues. The first was an update to previous estimates of the amount of sea duty that can be gained from a rise in Career Sea Pay and Career Sea Pay Premium. The second was how to separate multiple effects of sea-duty pay that have been intermingled in previous estimates the effect of sea pay on reenlistment, the effect on attrition, and the effect on time spent on sea duty, conditional on remaining in the Navy. We also suggest an alternative method for combining sea pay with reenlistment bonuses a non-linear pricing scheme that would induce personnel to reveal important information about their willingness to reenlist and their willingness to undertake sea duty. Under this pricing mechanism, the Navy could fashion combinations of Selective Reenlistment Bonuses and sea pays that would achieve its reenlistment and sea-duty goals at less cost than the current compensation scheme.
- Economics and Cost Analysis
- Personnel Management and Labor Relations
- Military Forces and Organizations