The Dynamic Retention Model

Research Questions

  1. How has the dynamic retention model (DRM) been used to assess the retention effects of changes to compensation in both the military and civilian context?
  2. What are the technical details of the DRM and what recent extensions have been made to the model by RAND researchers?

The dynamic retention model (DRM) has several rich and realistic features that make it well suited for analyzing the retention effects of alternative compensation policies and pension reform. It is a lifecycle model where retention decisions are made each year over an entire career and not just once. The model allows for uncertainty in future periods and recognizes that people might change their mind in the future as they get more information about staying in their current position and their external opportunities. The DRM is particularly suited to assess major structural changes in a compensation system that do not have any historical antecedent.

This report summarizes RAND research on the DRM from a technical standpoint, drawing from many previous documents that have used and further extended the DRM.  The purpose is to provide researchers and analysts with the technical details of the DRM and recent extensions in one document rather than scattered across many. While the focus is on the technical aspects of the model, this report also provides an informal introduction to the model, as well as an annotated bibliography of the policy analyses conducted with the DRM and the published documents corresponding to each analysis.

Key Findings

  • The DRM provides a practical capability for modeling the retention of military personnel, civil service employees, public school teachers, and state employees.
  • The DRM is based on a rigorous, logically consistent framework and has been successfully extended to cover multiple topics of interest, such as retirement reform and the structure of special and incentive pays.
  • The DRM is particularly suited to assess major structural changes in a compensation system that do not have any historical antecedent.

Table of Contents

  • Chapter One

    Introduction

  • Chapter Two

    Modeling Retention

  • Chapter Three

    The RAND Dynamic Retention Model

  • Chapter Four

    Model Estimates and Fit and Simulation

  • Chapter Five

    Additional Innovations and Extensions to the DRM

  • Chapter Six

    Conclusion

  • Appendix

    Thematic RAND DRM Bibliography

This research was prepared for the Office of the Secretary of Defense and conducted within the Personnel, Readiness, and Health Program of the RAND National Security Research Division.

This report is part of the RAND Corporation Research report series. RAND reports present research findings and objective analysis that address the challenges facing the public and private sectors. All RAND reports undergo rigorous peer review to ensure high standards for research quality and objectivity.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors.

Download eBook for Free

Format File Size Notes
PDF file 1.8 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

© 版权声明
THE END
觉得文章有用,可以点个赞
点赞0 分享