By Beth J. Asch
As a way of facilitating the safeguard drawdown, the dep. of safeguard provided eligible body of workers both the Voluntary Separation Incentive or the precise Separation Bonus (VSI/SSB), a software to urge mid-career body of workers to split from carrier. key questions for policymakers desirous about the good fortune of this software are (1) Did this system set off mammoth separations (over and above what would routinely occur)? and (2) Did this system result in marginal performers to depart? during this file we use info on military enlisted team of workers to respond to those questions. We estimate that the VSI/SSB application elevated separations by means of thirteen percent issues over and above what we'd have anticipated for group of workers who met the eligibility standards throughout 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 info for An Examination of the Effects of Voluntary Separation Incentives
Finally, the correlation between age and eligibility is strong. Those who are 5 years older than the mean are about 15 percent more likely to be eligible in the Army, if other characteristics are held constant. These results suggest that, while the Army did not explicitly identify specific demographic groups for eligibility, its criteria for eligibility implicitly caused some groups to be more or less likely to be eligible. In some cases, the effects are large. They also indicate that, because of the correlation between the eligibility criteria and AFQT, highschool-diploma status, and time in grade, marginal performers were more likely to be eligible for the VSI/SSB benefit in the Army.
Mech. equip. 316 NOTE: * denotes statistically significant at the 1 percent level. 27 28 An Examination of the Effects of Voluntary Separation Incentives small difference is that AFQT, which is an easily observed characteristic, is not a strong measure of α in the model outlined in Chapter Three. Consequently, it may capture well the difference in eligibility since it is easily observed by Army administrators of the VSI/SSB program as well as by us, the researchers. But it may not capture well the difference in military and civilian opportunities, which is better known by the individual and the direct supervisor of the individual, but not by us or the VSI/SSB administrators.
The relatively small taker-rate difference possibly suggests the theoretical ambiguity of the effect of AFQT on separation. As noted earlier, lower-quality personnel have reduced opportunities in both the military and civilian alternative, making the effect of quality on separation theoretically ambiguous. 3 Probit Results: Dependent Variable = Taker Status Variable Coefficient Estimate Standard Error dF/dXi Intercept High education High AFQT 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.