Job search and asset accumulation under borrowing constraints
Silvio Rendon ()
Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
In this paper I show how borrowing constraints and job search interact. I fit a dynamic model to data from the National Longitudinal Survey (1979-cohort) and show that borrowing constraints are significant. Agents with more initial assets and more access to credit attain higher wages for several periods after high school graduation. The unemployed maintain their consumption by running down their assets, while the employed save to buffer against future unemployment spells. I also show that, unlike in models with exogenous income streams, unemployment transfers, by allowing agents to attain higher wages do not 'crowd out' but increase saving.
Keywords: Job search; asset accumulation liquidity constraints; consumption; unemployment; estimation of dynamic structural models (search for similar items in EconPapers)
JEL-codes: C33 E21 E24 J64 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed
Downloads: (external link)
https://econ-papers.upf.edu/papers/649.pdf Whole Paper (application/pdf)
Journal Article: JOB SEARCH AND ASSET ACCUMULATION UNDER BORROWING CONSTRAINTS * (2006)
Working Paper: Job search and asset accumulation under borrowing constraints (2002)
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:upf:upfgen:649
Access Statistics for this paper
More papers in Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).