The Unintended Consequences of Employer Credit Check Bans for Labor Markets
Andy Glover and
No 201905, Working Papers from Federal Reserve Bank of Cleveland
Over the last decade, 11 states have restricted employers? access to the credit reports of job applicants. We document a significant decline in county-level vacancies after these laws were enacted: Job postings fall by 5.5 percent in affected occupations relative to exempt occupations in the same county and the same occupation nationwide. Cross-sectional heterogeneity in the estimated effects suggests that employers use credit reports as signals: Vacancies fall more in counties with a large share of subprime residents, while they fall less in occupations with other commonly available signals.
Keywords: vacancies; credit score; credit check (search for similar items in EconPapers)
JEL-codes: J08 J23 J63 J78 (search for similar items in EconPapers)
Pages: 44 pages
New Economics Papers: this item is included in nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://doi.org/10.26509/frbc-wp-201905 Full text (text/html)
Working Paper: The Unintended Consequences of Employer Credit Check Bans for Labor Markets (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwq:190500
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by ().