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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
Introduction
Chapter Two
Methodology
Chapter Three
Total Force Results
Chapter Four
Comparing the Cost-Effectiveness of Bonuses and Educational Benefits
Chapter Five
Conclusions
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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