By Beth J. Asch
As a method of facilitating the security drawdown, the dep. of safeguard provided eligible team of workers both the Voluntary Separation Incentive or the particular Separation Bonus (VSI/SSB), a application to urge mid-career group of workers to split from provider. key questions for policymakers inquisitive about the luck of this application are (1) Did this system result in gigantic separations (over and above what would routinely occur)? and (2) Did this system result in marginal performers to go away? during this record we use info on military enlisted team of workers to respond to those questions. We estimate that the VSI/SSB software elevated separations by way of thirteen percent issues over and above what we'd have anticipated for body of workers who met the eligibility standards through the drawdown. We additionally discovered that those that have been low-quality have been prone to settle for the VSI/SSB provide.
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Additional resources for An Examination of the Effects of Voluntary Separation Incentives
Specifically, those without a high-school diploma were 19 percent more likely to take VSI/SSB than were those with a diploma, and those in the bottom half of the AFQT distribution were 6 percent more likely to take the benefit. Those with an additional year in their grade were 8 percent more likely to take the benefit and leave. These results are consistent with the hypothesis that lower-quality personnel viewed their expected opportunities in the military as being more limited than did their higher-quality counterparts.
Clemson University, unpublished paper.
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.
An Examination of the Effects of Voluntary Separation Incentives by Beth J. Asch