Empirical Biases and Some Remedies in Estimating the Effects of Selective Reenlistment Bonuses on Reenlistment Rates

Researchers have, for decades, been attempting to estimate the effects of Selective Reenlistment Bonuses (SRBs) on the probability of reenlistment for the military services. SRBs are targeted to specific military occupations for which reenlistment rates are lower (or expected to be lower) than what is needed. This article first identifies four primary sources of biases affecting these models: reverse causality from supply shifts (a negative bias), the endogeneity of the decision point causing coded SRBs to be higher for reenlisters than leavers (a positive bias), measurement error (a likely negative bias), and excess supply preventing the full effect of an SRB change to materialize (a positive or negative bias). The report proceeds to develop a model that attempts to address the first two biases. With U.S. Navy data from FY2001-FY2008, I examine the extent to which these two biases are affecting the estimated SRB effects. Despite these corrections, the difficulty of addressing the other biases calls into doubt studies that examine the effects of retention bonuses or even the effects of the structure of military pay in general.     

ANALYSING QUITS AND SEPARATIONS FROM THE ROYAL NAVY

Manning difficulties and retention of skilled personnel is a timely issue in the British armed forces, and especially in the all‐volunteer Royal Navy. Allied with difficulties of matching personnel numbers and posts, significant skill mismatches can take a long time to eradicate, with obvious financial and operational penalties. In the light of these factors, a holistic understanding of the exit behaviour of naval personnel is vital for naval manpower planners. This paper analyses ratings’ voluntary (quits) and involuntary (separation) exit patterns from the Royal Navy using an independent competing risks hazard regression analysis framework. The results show that both voluntary and involuntary exits are pro cyclical with respect to macroeconomic and labour market conditions for both male and female ratings. Male ratings are more likely to quit or separate due to a lack of promotion to higher ranks as compared with females. Male ratings are also more likely to quit as a result of a hectic operational tempo when compared with their female counterparts. Frequency of sea/shore deployments also seems to exert a significant effect with respect to quits and separation outcomes of both genders. In terms of marital status married males are less likely to quit compared with their unmarried male counterparts, whereas the opposite is the case for female ratings.     

An empirical assessment of us air force

The US Air Force is facing a record shortfall in pilots over the coming decade. Using personnel data on more than 10,000 Air Force pilots, this study examines the factors affecting the retention of pilots and assesses the effectiveness of the pilot bonus programme implemented by the Air Force to reduce attrition. Although surveys indicated sustained deployment rates were the leading cause of job dissatisfaction among Air Force pilots, the results of this study suggest economic factors had the largest impact on retention.     

Why do they serve? Changes and differences in motives of Danish soldiers deployed to peace-keeping and peace-enforcing missions

This paper investigates what motivates young people to volunteer for peace-keeping or peace-enforcing missions and how their motives change between pre- and post-deployment. Data include information about social and military background, and motives for more than 600 soldiers, 444 of whom answered the survey both before and after deployment. Soldiers are deployed to different missions under the same circumstances. To conceptualize motives among soldiers, we use factor analysis and find three factors: challenge, self-benefit, and fidelity. Challenge represents an occupational orientation; fidelity, an institutional orientation; and self-benefit, a desire for adventure. Exploiting the within-subject design of our data, we find that pre- and post-deployment motives vary significantly according to the type of mission and soldiers’ previous experiences (first-timers or experienced soldiers). Our results suggest that after the mission, peace-keepers are generally more disappointed than peace-enforcers. Our results also show that self-benefit motives are important for younger soldiers with only a high school education, and that this group usually serves as peace-enforcers during their gap year.