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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