A multivariate analysis of the effects of the VSI/SSB separation program on Navy enlisted personnel

Abstract

This thesis investigates the behavior of Navy enlisted personnel who were eligible for, and offered, early voluntary separation under one of two monetary incentive programs during FY1992. The two programs were the voluntary separation incentive (VSI) and the special separation bonus (SSB). The purpose is to identify the factors that influence (1) the voluntary separation decision and (2) the decision between the two programs. Multivariate logit models were estimated to explain the decision to accept a voluntary separation incentive and the decision of which program to accept. The results show that the statistically significant factors affecting the separation decision are consistent with simple economic theory. Recommendations regarding future implementation of the separation programs and for future research are provided.