Activation And The Earnings Of Reservists
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Activation and the Earnings of Reservists
Activation imposes a variety of costs on reservists. Among those costs is a potential decline in earnings during the period of activation. In this study, RAND researchers compute how earnings change when a reservist is activated using administrative data on military and civilian earnings obtained from the Department of Defense (DOD) and teh Social Security Administration (SSA). The study employs a comprehensive measure of annual earnings and covers the experiences of virtually all reservists activated in support of the Global War on Terrorism through 2003. Contrary to conventional wisdom and DOD survey evidence, the RAND study indicates that, on average, the earnings of reservists increase substantially when activated. Moreover, earnings gains increase length of active duty servcie. Some reservists do experience an earnings loss when activated, but the probability of experiencing an earnings loss declines with length of active duty service. Even so, these large earnings gains may be insufficient to compensate reservists for the hardship of active duty.
How Do Earnings Change when Reservists are Activated?
Among the many hardships of military activation is the possibility of losing earnings, and though some research points to such a loss, other research suggests that reservists in fact earn substantially more when they are activated. The authors examine earnings reports from the 2004 and 2005 Status of Forces Survey of Reserve Component Members (SOFS-R) and those from administrative data--the Social Security Administration and military pay records.
Military Personnel: Reserve Component Servicemembers on Average Earn More Income While Activated
This is a print on demand edition of a hard to find publication. As of Feb. 2009, approx. 691,000 reserve servicemembers have been activated in support of operations in Iraq and Afghanistan, with many being called for multiple deployments or extended for more than one year. This increased use of the reserve component servicemembers has led to questions about whether reserve component servicemembers might be experiencing a decline in earnings as a result of extended and frequent activations. Studies determined that for calendar years 2004 and 2005, on avg., reserve component servicemembers earned more income while serving on active duty than they had earned as civilians before activation. Reserve component servicemembers had a net gain of $1,500/month in 2004 and 2005 after activation.