| Summary: | This thesis determines whether there are differences in earnings and productivity of active duty members in the Navy, based on dependent status. Using data collected from Defense Manpower Data Center (DMDC), Bureau of Naval Medicine (BUMED), Military Traffic Management Office, and the Navy' Budgeting Office, a cost basis of individuals with and without dependents was constructed to see if there was an appreciable difference in costs. Several studies and surveys were then evaluated to determine if there was a noticeable difference in productivity or benefits for the Navy based on dependent status. The findings revealed a difference in the cost to the Navy but found little or no added productivity. Furthermore, even though the difference in pay was relatively small, it had a large effect on the morale of individuals. Based on these findings, an alternative proposal for a more equitable compensation system was developed. This new system would help maintain the highest morale, simplify current procedures, create future savings for the Navy, and continue to provide the majority of benefits to the member. This solution would not affect retirement pay or the tax burden of individuals or the Navy. (AN)
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