Financial and Labor Market Impacts of a Servicemember's PCS on Spouses

Abstract

This study investigates how frequent relocations due to Permanent Change of Station (PCS) orders and occupational licensing requirements affect military spouse labor market outcomes. Around 400,000 service members execute a PCS annually, and a significant fraction conduct their PCS with their spouse and families. These frequent relocations can be disruptive for the employment and human capital development of military spouses. Using the 2019 Active Duty Spouse Survey, I do not find PCS to be a significant determinant of military spouse employment and contributions to family income. In contrast, having a new license required in their current duty station significantly increases spouse unemployment and makes full-time work less likely. I also find that spouses who recently completed higher education are likely to be unemployed, and that spouses with professions in health care, education or administrative sectors are more likely to be working part-time. Turning to state occupational licensing data, I document that spouses with occupations in these heavily regulated professions in Navy FCAs are most likely to be unemployed or employed part-time. Recommendations include more targeted assistance to spouses in these affected professions.