An analysis of the marriage and dependency premiums among active duty Navy personnel

Abstract

Within the Navy, married active duty service members and unwed single sailors with dependents are entitled to receive additional benefits compared to their single counterparts. The majority of these benefits are received through increases in the service member's Basic Allowance for Housing, Family Separation Allowance and medical coverage for spouses and dependents. This study estimates how much these increases cost the Navy. Data acquired from the Center for Defense Manpower Data Center and the Center for Naval Analyses are used to determine the average increase in BAH, FSA and medical coverage costs for married sailors and unwed single sailors with dependents. Surprisingly, the pay premium for being married or having dependents ranges from only 4 percent to only 10 percent for all enlisted ranks of E-5 and above and for all officer ranks. This premium is well below the marriage premium in the civilian labor market. Also, it is far below the pay increment received from advancement to the next paygrade.