Tuition Assistance Usage and First-Term Military Retention

National Defense Research Institute

Tuition

Assistance

Usage and

First-Term

Military

Retention

Richard Buddin

Kanika Kapur

R

Prepared for the

Office of the Secretary of Defense

Approved for public release; distribution unlimited

The research described in this report was sponsored by the Office of

the Secretary of Defense (OSD). The research was conducted in

RAND¡¯s National Defense Research Institute, a federally funded

research and development center supported by the OSD, the Joint

Staff, the unified commands, and the defense agencies under

Contract DASW01-01-C-0004.

Library of Congress Cataloging-in-Publication Data

Buddin, Richard J., 1951¨C

Tuition assistance usage and first-term military retention / Richard Buddin,

Kanika Kapur.

p. cm.

¡°MR-1295.¡±

Includes bibliographical references.

ISBN 0-8330-3177-5

1. Student aid¡ªUnited States. 2. United States¡ªArmed Forces¡ªPay,

allowances, etc. 3. Soldiers¡ªEducation, Non-military¡ªUnited States. 4. United

States¡ªArmed Forces¡ªRecruiting, enlistment, etc. 5. United States. Navy¡ª

Personnel management. 6. United States. Marine Corps¡ªPersonnel management.

I. Kapur, Kanika. II. Title.

V698 .B84 2002

355.2'23¡ªdc21

2002069721

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PREFACE

Tuition assistance (TA) is a military-sponsored program that reimburses military members for the cost of college classes while on

active duty. The program is part of a series of quality-of-life efforts

designed to make military service more attractive to youth and

encourage them to remain in the military. This report examines

tuition assistance and retention behavior for first-term members of

the Navy and Marine Corps (similar data were not available for other

military services). The analysis examines what types of sailors and

marines use TA and examines whether TA users are more prone to

reenlist than are military members who take no college classes during the first term.

The Deputy Assistant Secretary of Defense for Military Communities

and Family Policy sponsored the research. This report should interest those concerned with military families, the well being of servicemembers, educational opportunities for military members, and the

attendant implications of these issues for recruiting and retention.

The research was conducted in the Forces and Resources Policy

Center, which is part of RAND¡¯s National Defense Research Institute,

a federally funded research and development center sponsored by

the Office of the Secretary of Defense, the Joint Staff, the unified

commands, and the defense agencies.

iii

CONTENTS

Preface ........................................ iii

Figures ........................................ vii

Tables......................................... ix

Summary ...................................... xi

Acknowledgments............................... xvii

Acronyms ..................................... xix

Chapter One

INTRODUCTION .............................. 1

Background .................................. 1

Purpose of This Research ........................ 2

Data ........................................ 3

Structure of the Report .......................... 4

Chapter Two

ANALYSIS FRAMEWORK AND DATA ................ 5

Conceptual Issues .............................. 5

Literature Review .............................. 7

Empirical Methodology ......................... 15

Bivariate Probit Model of TA Usage and Retention ... 16

Propensity Score Model of How TA Affects

Retention ............................... 20

Data ....................................... 22

Chapter Three

RESULTS FOR THE MARINE CORPS ............... 27

Bivariate Probit Model of TA Usage and Retention ..... 27

v

vi

Tuition Assistance Usage and First-Term Military Retention

TA Usage .................................. 30

First-Term Retention ......................... 33

Propensity Score Model of How TA Affects Retention ... 34

Summary ................................... 37

Chapter Four

RESULTS FOR THE NAVY ....................... 39

Bivariate Probit Model of TA Usage and Retention ..... 39

TA Usage .................................. 42

First-Term Retention ......................... 44

Propensity Score Model of How TA Affects Retention ... 45

Summary ................................... 46

Chapter Five

CONCLUSIONS............................... 49

Appendix

A. REESTIMATION OF THE BOESEL AND JOHNSON

RETENTION MODEL .......................... 53

B. REESTIMATION OF THE GARCIA AND JOY

CONTINUATION MODEL ....................... 59

C. REESTIMATION OF THE GARCIA et al. CONTINUATION

MODEL .................................... 63

D. A BIVARIATE PROBIT MODEL OF TA USAGE AND

REENLISTMENT .............................. 67

Bibliography .................................... 73

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