Behavior in the Market for U.S. Army Recruits: PLS and 2SPLS Analysis of the Impact of Health Insurance Unavailability in the Non-Military Sector, 2003-2007

Richard J. Cebula, Christopher Coombs


This empirical study addresses a largely heretofore-ignored issue, namely, does the
unavailability of health insurance in the non-military sector of the U.S. act as a marginal
incentive for persons to enlist in the U.S. Army? Within a cost-benefit framework, the present
study endeavors to provide insight into this issue. The empirical analysis includes a variety of
economic and non-economic control variables and takes the form of a panel data study for the
years 2003 through 2007. Panel least squares and two-stage panel least squares estimates
demonstrate, among other things, that the greater the percentage of the civilian population
without health insurance, the greater the rate of enlistment in the U.S. Army.

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