Handbook of Defense Economics

The USA and other countries spend a significant portion of their defense budgets on personnel. Effective management of military forces requires an understanding of the economics of military manpower. Over the past three decades economists have produced a substantial body of research about the subject. This chapter distills this literature for a general audience. Topics surveyed include the supply of personnel, personnel productivity and the demand for personnel, procurement by conscription versus voluntary means, the structure of pay, the use of women and reservists, and the civilian return to military training and experience. It also points to directions for future research.