Recruiters, advertising, and navy enlistments

Abstract Regression analysis is used to estimate the effects on Navy enlistments of recruiters, advertising, unemployment and other factors. In measuring the effects of these factors on enlistments, changes in both the demand for and supply of enlistments are taken into account. Advertising is treated as a capital investment; its effect is estimated using a maximum likelihood technique that was developed for measuring the effects of capital investments. We find strong evidence that recruiters and unemployment increase enlistments. Advertising also seems to increase enlistments, but its effect is highly uncertain. The results suggest that increases in recruiting resources would have eliminated the enlistment shortfalls experienced by the Navy in FY 1978–79.