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Atlanta Fed Working Papers


Evidence of Demand Factors in the Determination of the Labor Market Intermittency Penalty

Julie L. Hotchkiss and M. Melinda Pitts
Working Paper 2007-16
July 2007

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The purpose of this paper is to determine whether any empirical evidence exists for the contribution of employer, or demand-side, determinants of the labor market intermittency penalty. The documented negative relationship between the size of the penalty and labor market strength is interpreted as evidence that labor market intermittency is viewed as an undesirable characteristic that employers penalize more severely when the labor market is weak.

JEL classification: J31, J22

Key words: intermittent labor supply, time allocation, wage determination


The authors thank Francine Blau and Solomon Polachek for helpful comments. The views expressed here are the authors’ and not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System. Any remaining errors are the authors’ responsibility.

Please address questions regarding content to Julie Hotchkiss (contact author), Research Department, Federal Reserve Bank of Atlanta, 1000 Peachtree Street, N.E., Atlanta, GA, 30309, 404-498-8198, julie.l.hotchkiss@atl.frb.org, or M. Melinda Pitts, Research Department, Federal Reserve Bank of Atlanta, 1000 Peachtree Street, N.E., Atlanta, GA, 30309, 404-498-7009, melinda.pitts@atl.frb.org.

For further information, contact the Public Affairs Department, Federal Reserve Bank of Atlanta, 1000 Peachtree Street, N.E., Atlanta, Georgia 30309-4470, 404-498-8020.