The Effect of Reserve Activations and Active-Duty Deployments on Local Employment During the Global War on Terrorism

by David S Loughran, Jacob Alex Klerman, Bogdan Savych

Download

Download eBook for Free

Full Document

FormatFile SizeNotes
PDF file 0.3 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Summary Only

FormatFile SizeNotes
PDF file 0.1 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback66 pages $20.00 $16.00 20% Web Discount

Today, American service personnel are deploying at rates not seen since the Vietnam War. Such deployments and activations have raised concerns about their effect on the local economies-due to the temporary loss of employees in the workforce-but little analysis has been done on the issue. To address this gap in understanding, the authors of this report use econometric models to analyze the impact of activations and deployments on economic conditions, as measured by changes in employment at the county level. The authors conclude that long-term impacts on local economic conditions, in aggregate, will not be significant. For reserve activations, the authors’ estimates imply a nearly one-for-one decline in employment with activation in the short run, but by four months following a given activation, employment returns to its pre-activation level. For active-duty deployments, their estimates imply an increase of about one civilian employee for every ten deploying active-duty service members. The authors suggest that future research might focus on the impact of activations on smaller firms and the self-employed, neither of which could be examined specifically with the data used in this report.

Table of Contents

  • Chapter One

    Introduction

  • Chapter Two

    The Policy Context

  • Chapter Three

    Data and Methods

  • Chapter Four

    Econometric Results

  • Chapter Five

    Conclusions

  • Appendix A

    Results for Quarterly Earnings

  • Appendix B

    Public Use Microdata Area (PUMA)-Level Results

  • Appendix C

    Employment Results by Subperiod

The research descibed in this report results from the RAND Corporation’s continuing program of self-initiated independent research. Support for such research is provided, in part, by donors and by the independent research and development provisions of RAND’s contracts for the operation of its U.S. Department of Defense federally funded research and development centers.

This report is part of the RAND Corporation technical report series. RAND technical reports may include research findings on a specific topic that is limited in scope or intended for a narrow audience; present discussions of the methodology employed in research; provide literature reviews, survey instruments, modeling exercises, guidelines for practitioners and research professionals, and supporting documentation; or deliver preliminary findings. All RAND reports undergo rigorous peer review to ensure that they meet high standards for research quality and objectivity.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.