The Credit Market Consequences of Job Displacement
The Review of Economics and Statistics
2018
open access
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 (3)
- Pages
- 405-415
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref