ABSTRACT
The purpose of this paper is to build upon the work of Daula and others by isolating the determinants of the reenlistment and extension decision with special attention paid to military pay and the selective reenlistment bonus in specific military occupational specialties (MOS). We separate the effect of reenlistment bonuses from military pay because the former can be more easily controlled and managed by the Army and because pay per se is virtually the same across military occupations. We also consider reenlistments, extensions, and separations, thereby describing a three-way decision process and enabling policy makers to better analyze the manpower mix. This is an advance over previous research (Lakhani, Gilroy, &: Capps, 1984), which considered only reenlistment and separation probabilities.
