A longitudinal analysis of the acceptance rates of the Navy's Voluntary Separation Incentive/Special Separation Benefit (VSI/SSB) program

Abstract

This thesis investigates the behavior of Navy enlisted personnel who were eligible for the fiscal 1992 or fiscal 1993 VSI (Voluntary Separation Incentive) and SSB (Special Separation Bonus) Program. The objectives of this thesis are: (1) to determine the characteristics of individuals who do not accept VSI or SSB when initially offered, but rather wait for a period of time before making the acceptance decision, and (2) to determine if individuals are more likely to take the separation bonus during the initial phase of eligibility or during a later phase. Using data provided by the Defense Manpower Data Center, binomial and multinomial logit models are estimated to explain the factors affecting the timing of the separation decision. The results show that the statistically significant factors in the timing of the acceptance decision are consistent with those identified in previous studies as being significant to the overall take decision, and that the overwhelming majority of those who accept either VSI or SSB do so during their initial phase of eligibility. In addition, individuals who were eligible during the previous fiscal year (1992) are less likely to accept one of the separation bonuses in fiscal 1993. The thesis provides recommendations for adjusting program eligibility criteria to achieve desired acceptance results and also recommends future research.