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Army Re-Enlistment During Oif/Oef: Bonuses, Deployment, And Stop-Loss

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  • Curtis Simon
  • John Warner

Abstract

In 2004, stretched by wartime deployments, the US Army countered declining retention by increasing re-enlistment bonuses and implementing stop-loss to prevent soldiers from separating at the end of their enlistment. We estimate the effects of bonuses, deployment, and stop-loss on re-enlistment between FY 2002 and 2006. We estimate that the baseline propensity to re-enlist fell by 20%. However, we find that deployed soldiers are more likely to re-enlist and that the estimated effects of re-enlistment bonuses are similar to those estimated in peacetime. We evaluate the reasons for our findings, and calculate the cost effectiveness of re-enlistment bonuses.

Suggested Citation

  • Curtis Simon & John Warner, 2010. "Army Re-Enlistment During Oif/Oef: Bonuses, Deployment, And Stop-Loss," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(5-6), pages 507-527.
    • Handle: RePEc:taf:defpea:v:21:y:2010:i:5-6:p:507-527
    DOI: 10.1080/10242694.2010.513488
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    Citations

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    Cited by:

    1. Renaud Bellais & Martial Foucault & Jean-Michel Oudot, 2014. "Économie de la défense," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01052607, HAL.
    2. Justin Joffrion & Nathan Wozny, 2015. "Military Retention Incentives: Evidence from the Air Force Selective Reenlistment Bonus," Upjohn Working Papers 15-226, W.E. Upjohn Institute for Employment Research.

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