By Beth J. Asch
As a method of facilitating the protection drawdown, the dept of security provided eligible team of workers both the Voluntary Separation Incentive or the specified Separation Bonus (VSI/SSB), a application to urge mid-career body of workers to split from provider. key questions for policymakers all in favour of the good fortune of this software are (1) Did this system result in giant separations (over and above what would typically occur)? and (2) Did this system result in marginal performers to go away? during this record we use facts on military enlisted group of workers to respond to those questions. We estimate that the VSI/SSB application elevated separations via thirteen percent issues over and above what we'd have anticipated for group of workers who met the eligibility standards through the drawdown. We additionally came upon that those that have been low-quality have been likely to settle for the VSI/SSB provide.
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Extra resources for An Examination of the Effects of Voluntary Separation Incentives
They suggest that it is possible to design a permanent separation-pay program for military personnel. This page intentionally blank Appendix UNINTERACTED SEPARATION RESULTS This appendix presents the separation results without interacting the control variables with the dummy variable controlling for test year. As described in the main text, the estimated effect of the program is larger without the extra interaction variables. 1 OLS Regression Results Without Time-Interaction Variables: Dependent Variable = Separation Status Variable Intercept Year = 1992 Eligible for VSI/SSB Eligible in 1992 Eligible * High quality High education High AFQT High quality Time in pay grade Age Dependents Female Black Hispanic Asian Other Rank/YOS E1–E3, YOS 10–12 E1–E3, YOS 13–15 E4, YOS 7–9 E4, YOS 10–12 E4, YOS 13–15 E5–E6, YOS 7–9 E5–E6, YOS 10–12 E5–E6, YOS 13–15 E7–E9, YOS 7–9 E7–E9, YOS 10–12 E7–E9, YOS 13–15 Electronic equip.
For example, blacks were about 8 percent less likely than non-Hispanic whites to take the benefit. Thus, although blacks are more likely to be eligible for separation pay, they were somewhat less likely to take it even with their eligibility. We also found that eligible Hispanics and Asians were 11 percent less likely to take the benefit than were eligible non-Hispanic whites. These results suggest that, relative to non-Hispanic whites, eligible minorities were more likely to view their opportunities in the military as being better than their civilian alternatives.
We found that, indeed, lower-quality personnel were more likely to accept the VSI/SSB offer, that taker rates differed by demographic characteristic, and that, had the program been offered to the ineligible population, the taker rate would have been lower than it was. The last result suggests that the Army was successful in setting the eligibility criteria in such a way that a high taker rate was achieved. We also found that the program had a sizable effect on separations; we estimated that the program increased the separation rate by 13 percentage points, or by 100 percent.
An Examination of the Effects of Voluntary Separation Incentives by Beth J. Asch