Cover: Educational Benefits Versus Enlistment Bonuses

Educational Benefits Versus Enlistment Bonuses

A Comparison of Recruiting Options

Published 1994

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.

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