Read e-book online An Examination of the Effects of Voluntary Separation PDF

By Beth J. Asch

ISBN-10: 083302566X

ISBN-13: 9780833025661

As a method of facilitating the safety drawdown, the dept of safeguard provided eligible group of workers both the Voluntary Separation Incentive or the unique Separation Bonus (VSI/SSB), a software to urge mid-career team of workers to split from provider. key questions for policymakers inquisitive about the good fortune of this software are (1) Did this system result in big separations (over and above what would typically occur)? and (2) Did this system set off marginal performers to depart? during this file we use facts on military enlisted group of workers to reply to those questions. We estimate that the VSI/SSB application elevated separations through thirteen percent issues over and above what we'd have anticipated for team of workers who met the eligibility standards through the drawdown. We additionally stumbled on that those that have been low-quality have been likely to settle for the VSI/SSB provide.

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Presumably, these individuals would have been involuntarily separated as part of the drawdown had they not taken the VSI/SSB program and left voluntarily. We excluded personnel who met the tighter rules in both 1989 and 1992. We found no difference in the estimated program effect, because we already controlled for those subject to the tighter rules by including the YOS-and-rank combination variables, especially those that indicate personnel who are in low ranks and higher YOS. 5. 5 OLS Regression Results: 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.

Denotes statistically significant at the 5 percent level. 5 suggest that about half of the individuals who separated under the VSI/SSB program in 1992 left because of the program. The other half would have separated in any case, even without the program. 8 percent, would have separated even without the program. This result indicates that DoD paid “economic rents” to some personnel: paying them to leave when they would have left even without the program. Nonetheless, we estimate that the program had a substantial effect on separations, even when we controlled for the compulsory effects of the drawdown.

The estimated effect of the program is even larger for low-quality personnel. 7 percentage points. 4 percentage points, or an increase in the separation rate of 100 percent as a result of the program. 4). 4. 2 ______________ 2 As an additional means of controlling for the compulsory effects of the drawdown on separation rates, we reestimated Eq. 7, excluding those personnel who would have been subjected to the tighter up-or-out rules that were implemented as part of the drawdown. Presumably, these individuals would have been involuntarily separated as part of the drawdown had they not taken the VSI/SSB program and left voluntarily.

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An Examination of the Effects of Voluntary Separation Incentives by Beth J. Asch


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