An Imputation Method for Estimating Civilian Opportunities Available to Military Enlisted Men.

by Adele P. Massell

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This new method--suggested by recent research in civilian labor economics--uses data on retention rates, military pay, and characteristics of enlisted men to estimate the average value of civilian employment opportunities offered to military veterans. The method is illustrated using data for a selected sample of men in Air Force electronics specialties who made reenlistment decisions in FY 1972. Results suggest a reenlistment supply elasticity for these men in the range of 1.5 to 2.5. Estimates also suggest that a 55-percent increase in second-term military pay would induce retention rates near 0.5 for men without dependents. 37 pp. Ref.

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