Some Like it Hot: Assessing Longer-Term Labor Market Benefits from a High-Pressure Economy

53 Pages Posted: 15 Mar 2018

See all articles by Julie L. Hotchkiss

Julie L. Hotchkiss

Federal Reserve Bank of Atlanta; Georgia State University - Department of Economics

Robert Elijah Moore

Georgia State University - Andrew Young School of Policy Studies

Multiple version iconThere are 2 versions of this paper

Date Written: February 2018

Abstract

This paper explores the evidence for positive hysteresis in the labor market. Using data from the National Longitudinal Surveys of Youth, we find that negative labor market outcomes during high unemployment periods are mitigated by exposure to a high-pressure economy during the preceding expansion. Breaking total exposure into average intensity and duration, suggests that these two dimensions have differing impacts depending on the outcome. Additionally, benefits are typically only statistically significantly different from no exposure for only a relatively few demographic groups.

Keywords: hysteresis, unemployment, labor market gaps, labor force participation, wage gaps

JEL Classification: E60, E24, J64, J31

Suggested Citation

Hotchkiss, Julie L. and Moore, Robert Elijah, Some Like it Hot: Assessing Longer-Term Labor Market Benefits from a High-Pressure Economy (February 2018). Andrew Young School of Policy Studies Research Paper Series No. 18-01. Available at SSRN: https://ssrn.com/abstract=3140774 or http://dx.doi.org/10.2139/ssrn.3140774

Julie L. Hotchkiss

Federal Reserve Bank of Atlanta ( email )

Research Department
1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
404-498-8198 (Phone)
404-498-8058 (Fax)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

Robert Elijah Moore (Contact Author)

Georgia State University - Andrew Young School of Policy Studies ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-651-3756 (Phone)
404-651-4985 (Fax)

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