The Cost-Effectiveness of Various Fringe Benefits to U.S. Navy Personnel
This paper reports on a quantitative assessment of the net cost impacts, including the increased recruiting and training costs, of eliminating various fringe benefits accorded to U.S. Navy personnel based in CONUS. These benefits, available to both active duty and retired, include the use of the Commissaries, the use of so-called consolidated package stores which offer savings on bottled alcoholic beverages and the use of the Navy’s extensive recreational activities. Key inputs were comprehensive personnel surveys performed at representative U.S. bases, elasticities between retention rates and incomes, and training and recruiting costs. The general conclusion is that such fringe benefits appear to be a cost-effective use of the Navy’s funds.
KeywordsIncome Expense Lost
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