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Additional info for Patterns of Enlisted Compensation (Rand Corporation Rand Monograph Report)
Example text
For Total Compensation, Basic Pay and the Retirement Benefit account for the majority of the levels, whereas the Retirement Benefit and the Enlistment/Reenlistment Bonus contribute the most to the variance. This exercise indicates that enlistees’ take-home pay is largely determined by the amount of Basic Pay they receive, but that if some service members are receiving more take-home pay than others, this difference is likely to be explained by differences in Enlistment/Reenlistment Bonuses. For Total Compensation, with the exception of Enlistment/Reenlistment Bonuses, most differences in pay are explained by noncash components.
For example, if we examined the compensation of females without controlling for other characteristics, we would not be able to evaluate whether any differences in male and female compensation were related to being male or female per se, or merely related to the fact that women were more likely to be observed in particular occupations and branches of service, and thus that the differences between male and female compensation were actually due to differences in occupation and service by gender. By using regression analysis, we accounted for other observed characteristics to identify the variation in compensation due to gender while holding constant the other characteristics, such as service and occupation.
1 shows the characteristics we examined in this study, and the arrow indicates that these characteristics are related to the compensation components we studied, listed in the second panel. Whether a service member receives various components of compensation and the size of the component yields different values for the compensation measures we examined. This relationship is illustrated by the second arrow pointing from the components to the compensation measures. This scheme indicates how individual characteristics are translated into our compensation measures.
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