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THE CREDIT MARKET CONSEQUENCES OF JOB DISPLACEMENT
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Journal Article
THE CREDIT MARKET CONSEQUENCES OF JOB DISPLACEMENT
2018
Overview
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.
Publisher
MIT Press,MIT Press Journals, The
Subject
