Job displacement and financial outcomes
Julie Hotchkiss and
Economics Letters, 2019, vol. 177, issue C, 18-21
Using two proprietary datasets on earnings and credit outcomes, this paper finds that both high- and low-earners take a significant and persistent hit to income after job displacement. But these losses only translate into worse credit conditions – higher credit card utilization, lower FICO scores, and a pick up in the rate of card accounts that are delinquent or over limit – among low- earners. We observe no negative implications among higher income households, providing novel empirical evidence of the economically disparate impact of job loss.
Keywords: Displacement; Credit constraints; Administrative data; Unemployment; Mass layoff (search for similar items in EconPapers)
JEL-codes: J65 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:177:y:2019:i:c:p:18-21
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