Labor Substitution in the Military Environment: Implications for Enlisted Force Management.
Abstract
This report analyzes the potential for cost savings associated with the substitution of first term and career personnel at the occupational level. Its analysis of the measurement and evaluation of labor productivity in the military enviroment makes it possible to assess the potential for making first term/career substitutions. For this research, actual productivity measures and work unit background data were used to estimate the parameters of a two-tiered constant elasticity of substitution (CES) labor aggregation function. The results of the analysis indicate that higher skill occupations overutilize first term labor inputs and lower skill occupations underutilize them. Thus, a redistribution existing first term and career personnel within the set of occupations analyzed would mean almost a $20 million annual cost savings, with no loss of overall effectiveness. The findings of this research suggest that the attainment of currently stated objective force goals would be associated with a substantial reduction in overall effectiveness. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1979
- Accession Number
- ADA078377
Entities
People
- Mark J. Albrecht
Organizations
- RAND Corporation