New Estimates of the Effect of Unemployment on Enlisted Retention
Published Date: July 1, 1985
New estimates of the effect of unemployment on enlisted retention are provided in this paper. Unemployment is found to have a positive effect upon the reenlistment rate for seven of the nine rating groups studied, and a positive effect upon both the extension rate and the total retention rate for all nine rating groups. However, the pay elasticities are three to five times as large as the unemployment elasticities, so that decreases in the unemployment rate may be offset by much smaller percentage increases in military pay.
