Moving to a Job: The Role of Home Equity, Debt, and Access to Credit

Sørensen, Bent E, Maria Luengo-Prado, Yuliya Demyanyk and Dmytro Hryshko

No 9474, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using credit report data from two of the three major credit bureaus in the United States, we infer with high certainty whether households move to other labor markets defined by metropolitan areas. We estimate how moving patterns relate to labor market conditions, personal credit, and homeownership using panel regressions with fixed effects which control for all constant individual-specific traits. We interpret the patterns through simulations of a dynamic model of consumption, housing, and location choice. We find that homeowners with negative home equity move more than other homeowners, in particular when local unemployment growth is high---overall, negative home equity is not an important barrier to labor mobility.

Keywords: Credit contraint; Credit reports; Mobility; Unemployment (search for similar items in EconPapers)
JEL-codes: D1 E2 (search for similar items in EconPapers)
Date: 2013-05
New Economics Papers: this item is included in nep-mac, nep-mig and nep-ure
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: Moving to a Job: The Role of Home Equity, Debt, and Access to Credit (2017)
Working Paper: Moving to a job: The role of home equity, debt, and access to credit (2013)
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