Accession Number : ADA310920
Title : An Analysis of the Effects of Increases in Aviation Bonuses on the Retention of Naval Aviators Using an Annualized Cost of Leaving (ACOL) Approach.
Descriptive Note : Master's thesis,
Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CA
Personal Author(s) : Riebel, David
PDF Url : ADA310920
Report Date : MAR 1996
Pagination or Media Count : 69
Abstract : The objective of this thesis is to develop an Annualized Cost of Leaving (ACOL) model to predict Naval aviator separation decisions in response to changes in aviation bonus pays, specifically Aviation Continuation Pay (ACP) and Aviation Career Incentive Pay (ACIP). The ACOL approach models an individual's decision to stay or leave the military based on the monetary differences between alternative career choices. The individual's 'taste' or preference for military versus civilian life are incorporated into the decision modeling process. The model assumes that individuals will stay in the military if the positive difference between expected military pay and expected civilian pay (the cost-of-leaving) exceeds the distaste for the military lifestyle. Officer Master File (OMF) data from the Defense Manpower Data Center (DMDC) and data developed by Turner (NPS 1995) were used to determine individual characteristics and to compute the present value of the expected military pay stream. Census Bureau data were used to estimate future expected civilians earnings. A logit regression model was developed to simulate the retention of Naval aviators in response to changes in the ACOL due to increases in ACIP or ACP. The results indicate that the proposed increases in either ACIP or ACP are cost effective ways of increasing the retention of Naval aviators.
Descriptors : *NAVAL PERSONNEL, *PILOTS, *COST MODELS, *COMPENSATION, *PERSONNEL RETENTION, *MONEY, *GRANTS, MATHEMATICAL MODELS, MILITARY PERSONNEL, DECISION MAKING, DEFENSE SYSTEMS, COST EFFECTIVENESS, THESES, REGRESSION ANALYSIS, AERONAUTICS, CAREERS, MANPOWER, INFORMATION CENTERS, SALARIES, SEPARATION, MOTIVATION.
Subject Categories : Economics and Cost Analysis
Personnel Management and Labor Relations
Military Aircraft Operations
Distribution Statement : APPROVED FOR PUBLIC RELEASE