The Army 2-Year Enlistment Option: Measuring Its Cost-Effectiveness

Abstract

Data from the U.S. Army Research Institute's Survey of Army Recruits was examined to assess the effectiveness of the 2-year enlistment tour. Cross tabulation and cost benefit analyses were conducted, indicating that in the 1986 sample of new Army recruits, more than one-half (54%) of the male, 2-year recruits would not have enlisted in any service without the 2-year option. Furthermore, this percentage was even larger for the higher AFQT category recruits, indicating that the 2-year option is particularly useful for attracting recruits from the highest AFQT categories. The substitution effect from the other services is relatively small. The 2-year option was also found to be a valuable allocation tool that attracts recruits to MOS that would otherwise be difficult to fill. The cost benefit analysis, taking into account training and differential attrition and retention rates across tours, indicates that the 2-year option is cost effective and saves the Army nearly $178 million per year when compared with pay incentives.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 1988
Accession Number
ADA197081

Entities

People

  • Curtis L. Gilroy
  • David K. Horne
  • Rebecca M. Pliske

Organizations

  • U.S. Army Research Institute for the Behavioral and Social Sciences

Tags

DTIC Thesaurus Topics

  • Air Force
  • Attrition
  • Classification
  • Compensation
  • Cost Benefit Analysis
  • Cost Effectiveness
  • Cost Estimates
  • Costs
  • Elastic Properties
  • Force Structure
  • Management Personnel
  • Manpower
  • Military Research
  • Recruiting
  • Recruits
  • Social Sciences
  • Training

Readers

  • Educational Psychology
  • Life Cycle Cost Analysis
  • Psychometric Testing or Psychological Assessment.