The report assesses the state of knowledge regarding the effects of sea pay on reenlistments and extensions of enlisted personnel. The major theoretical and empirical studies are reviewed, and their limitations noted. A research agenda is proposed based on gaps in the state of knowledge and the needs of Navy manpower planners. The report concludes that models using individual level data, incorporating information from the Annual Survey of Officers and Enlisted Personnel, would produce better estimates. The author recommends that future research also consider the effects of sea pay on the quality of enlisted personnel who reenlist. (SDW)