Measuring the Costs and Benefits of Army Service

SAG Corporation proposes to develop a framework for measuring the economic and social costs and benefits of an Army career. The research will focus on identifying and evaluating data sources and developing quantitative methods and procedures for comparing these costs and benefits. The resulting model will go beyond traditional retention models to look at the total impact of an Army career on an individual's present and future participation in the work force. The Phase I research will explore how costs and benefits vary with occupation, race and gender as well as career length. The research will incorporate elements of econometric and psychometric analysis as well as cost-benefit modeling. Phase I will result in a conceptual model to serve as the foundation for Phase II development of a policy analysis tool that Army analysts can use to objectively evaluate personnel and compensation policies. The model will allow for comparisons involving career lengths and differing assumptions about underlying determinants of the career decision. Costs and benefits will be tracked for an individual's entire career in the labor force.