Models of Accession and Retention
Abstract
In this paper, we outline two simple models that integrate accession and first-term retention policies. The first model describes the relation between optimal accession and first-term reenlistment bonus policies when marginal recruiting costs are constant. It is appropriate for the analyst who is concerned with the bonus policy for a single, relatively small rating or for the analyst dealing with a group whose supply is demand determined. Using this model, we find that optimal reenlistment bonus levels will be the highest in ratings which have high first-term attrition, high training costs, and which would have low reenlistment rates in the absence of bonuses. We also find that optimal bonus levels rise as military wages fall relative to civilian wages. The second model is similar to the first, but takes account of the fact that marginal recruiting costs rise as more recruits are obtained. Because of this, we find that a larger Navy implies higher optimal reenlistment bonus levels even in the long run.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1982
- Accession Number
- ADA131568
Entities
People
- Deborah Clay-mendez
Organizations
- Center for Naval Analyses