An Examination of the Effects of Voluntary Separation by Beth J. Asch PDF
By Beth J. Asch
As a method of facilitating the protection drawdown, the dep. of safety provided eligible body of workers both the Voluntary Separation Incentive or the specified Separation Bonus (VSI/SSB), a software to urge mid-career group of workers to split from carrier. key questions for policymakers curious about the luck of this application are (1) Did this system set off massive separations (over and above what would routinely occur)? and (2) Did this system set off marginal performers to depart? during this document we use facts on military enlisted body of workers to reply to those questions. We estimate that the VSI/SSB application elevated separations through thirteen percent issues over and above what we'd have anticipated for team of workers who met the eligibility standards in the course of the drawdown. We additionally came across that those that have been low-quality have been prone to settle for the VSI/SSB supply.
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Additional resources for An Examination of the Effects of Voluntary Separation Incentives
RAND, R-3901-A, 1992. Smith, D. Alton, Stephen Sylwester, and Christine Villa, “Army Reenlistment Models,” in Military Compensation and Personnel Retention: Models and Evidence, Curtis Gilroy, David Horne, and D. S. Army Research Institute for the Behavioral and Social Sciences, 1992. , and Hong W. S. : RAND, R-3117-MIL, 1985. Warner, John, and Beth Asch, “The Economics of Military Manpower,” in Handbook of Defense Economics, Vol. 1, K. Hartley and T. , Amsterdam: Elsevier, 1995. : Clemson University, unpublished paper.
We also found slightly lower separation rates for high-quality personnel, a result that Smith et al. (1992) find for those making a second-term reenlistment choice. 3 ______________ 3 As shown by Buddin et al. (1992), when the effect of quality on retention as opposed to its effect on promotion is not disentangled, the estimated effect of AFQT on retention is small and downward-biased. This page intentionally blank Chapter Five CONCLUSIONS In this report, we have described the characteristics of those who accepted the VSI/SSB offer to determine whether they were lowerquality personnel.
In addition, we estimated a separate program effect for low-quality personnel and for high-quality personnel. Finally, by interacting the Zi,t variables with the dummy variable representing the test year (see Eq. 7), we attempted to control for changes in separation behavior that are attributable to the drawdown rather than to the VSI/SSB program. 5 shows the results. 1. We see that the VSI/SSB program had a sizable effect on separation rates. Among high-quality personnel, the VSI/SSB program increased the probability of separation by 10 percentage points.
An Examination of the Effects of Voluntary Separation Incentives by Beth J. Asch