Educational Benefits Versus Enlistment Bonuses

A Comparison of Recruiting Options

by Beth J. Asch, James N. Dertouzos


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The relative cost-effectiveness of two incentive programs for recruitment — enlistment bonuses and educational benefits — are analyzed. The analysis also considers the effects of such programs on the service history of recruits, including reserve component accessions. Educational benefits are shown to significantly expand enlistment supply and increase incentives for first term completion. Relative to bonus programs, educational benefits enhance the flow of prior-service individuals into the Selected Reserves and have reduced costs because payments are deferred.

Table of Contents

  • Chapter One


  • Chapter Two


  • Chapter Three

    Total Force Results

  • Chapter Four

    Comparing the Cost-Effectiveness of Bonuses and Educational Benefits

  • Chapter Five


  • Appendix A

    Estimating Attrition, Separation, Retention, and Training Times

  • Appendix B

    Total Force Effects: Unconditional Probabilities

  • Appendix C

    Calculating the Actuarial Cost of Educational Benefits

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