EconPapers    
Economics at your fingertips  
 

The Unintended Consequences of Employer Credit Check Bans on Labor and Credit Markets

Kristle Cortes, Andy Glover and Murat Tasci ()
Additional contact information
Murat Tasci: Federal Reserve Bank of Cleveland

Koç University-TUSIAD Economic Research Forum Working Papers from Koc University-TUSIAD Economic Research Forum

Abstract: Lenders have traditionally used credit reports to measure a borrower’s default risk, but credit agencies also market reports to employers for use in hiring. Since the onset of the Great Recession, eleven state legislatures have restricted the use of credit reports in the labor market. We document that county-level unemployment rose faster in states that restricted employer credit checks and counties with more sub-prime citizens experienced larger increases in the unemployment rate than average. Using data from individual credit reports, we find that access to credit declines and delinquencies increase significantly after the state-level policy changes, especially for subprime borrowers.

Pages: 29 pages
Date: 2017-01
New Economics Papers: this item is included in nep-ban
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://eaf.ku.edu.tr/sites/eaf.ku.edu.tr/files/erf_wp_1702.pdf (application/pdf)

Related works:
Working Paper: The Unintended Consequences of Employer Credit Check Bans on Labor and Credit Markets (2018) Downloads
Working Paper: The Unintended Consequences of Employer Credit Check Bans on Labor and Credit Markets (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:koc:wpaper:1702

Access Statistics for this paper

More papers in Koç University-TUSIAD Economic Research Forum Working Papers from Koc University-TUSIAD Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Sumru Oz ().

 
Page updated 2022-09-21
Handle: RePEc:koc:wpaper:1702