The Effect of Pay and Retention Bonuses on Quit Rates in the U.S. Army

Bibliographic Data

ID7801611
AuthorsHyder Lakhani (corresponding author)
Year1988
Volume41
Issue3
Pages430-438
Publication date1988-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/001979398804100307
OpenAlexW2012376810
LanguageEN
Citations received12
References cited5

This paper investigates the effects of pay and reenlistment bonuses on quit rates in the U.S. Army. A three stage least squares analysis of 1981 data shows that quit rates were negatively related to pay level and, even more so, to the size of the bonus offered. The effects on the quit rate were significantly greater, however, for soldiers in combat occupations than for those in noncombat occupations. The author speculates that the skills learned by combat soldiers are less marketable in the civilian labor market than the more general skills acquired by noncombat soldiers; he thus urges higher bonuses in noncombat occupations

Business · Demographic economics · Economics · Employee retention · Labour economics · Management · Retention rate · Defense, Military, and Policy Studies · Labor market dynamics and wage inequality · Marketing · Psychology · Retirement, Disability, and Employment

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