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Is the pay responsiveness of enlisted personnel decreasing?

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  • Michael Hansen
  • Jennie Wenger

Abstract

An examination of past analyses suggests that today's sailors may be less responsive to compensation changes than previous generations. Such a change could make recruiting and retaining high-quality sailors more difficult. However, variation in researchers' decisions over time may simply have created the appearance of such a change. Our results suggest there is little variation in the pay elasticity over time. In contrast, the different reduced-form models we use to measure this relationship can explain most of the variation in the literature. Therefore, the evidence suggests that while sailors may have changed over time, their response to compensation has not.

Suggested Citation

  • Michael Hansen & Jennie Wenger, 2005. "Is the pay responsiveness of enlisted personnel decreasing?," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(1), pages 29-43.
  • Handle: RePEc:taf:defpea:v:16:y:2005:i:1:p:29-43 DOI: 10.1080/1024269052000323533
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    References listed on IDEAS

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    1. Daula, Thomas & Moffitt, Robert, 1995. "Estimating Dynamic Models of Quit Behavior: The Case of Military Reenlistment," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 499-523, July.
    2. Saul Pleeter & John T. Warner, 2001. "The Personal Discount Rate: Evidence from Military Downsizing Programs," American Economic Review, American Economic Association, pages 33-53.
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    Cited by:

    1. Carrell, Scott E., 2007. "The national internal labor market encounters the local labor market: Effects on employee retention," Labour Economics, Elsevier, vol. 14(5), pages 774-787, October.

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    Keywords

    Pay elasticity; Reenlistment; Compensation;

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