THE EFFECTS OF DIVERSITY AMONG PEERS AND ROLE MODELS ON U.S. NAVY RETENTION

Abstract

Improving diversity and inclusion is a priority for the U.S. Navy. We examine whether having more leaders and peers from minority groups has any impact on minority and non-minority enlisted and officer retention on different U.S. Navy platforms. We use longitudinal data on first-term enlisted sailors and naval officers from the Defense Manpower Data Center to estimate role model and peer causal effects on first-term reenlistment and retention on different size naval platforms. The results suggest that an increase in same-minority peers, immediate supervisors, and senior leadership on-board medium ships and submarines has statistically significant positive effects mainly on black first-term sailors. Moreover, our analysis suggests that an increase in same-minority peers has a statistically significant effect on first-term Hispanic officers and an increase in same-minority officer senior leadership has a statistically significant effect on first-term non-Hispanic and black officers, respectively. Our findings provide insights to support the U.S. Navy’s efforts to improve inclusion and diversity while maximizing talent within the Navy.