The Review of Economics and Statistics Vol. 100 No. 3 2018
The Credit Market Consequences of Job Displacement
open access
Abstract
This paper studies the role of job displacement in the household bankruptcy decision. Using an event-study methodology, I find that NLSY respondents are over three times more likely to file for bankruptcy immediately following a job loss. Using county-level data, I find similar magnitudes in the aggregate, with significant effects lasting two to three years. The results suggest that unemployment spells can have significant long-term consequences on households’ credit market outcomes.
- DOI
- 10.1162/rest_a_00709
- Volume
- 100
- Issue
- 3
- Pages
- 405-415
- Language
- en
- Sources
- openalex crossref