Moving to a Job: The Role of Home Equity, Debt, and Access to Credit
AbstractUsing 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9474.
Date of creation: May 2013
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- Yuliya Demyanyk & Dmytro Hryshko & María José Luengo Luengo-Prado & Bent Sorensen, 2013. "Moving to a job: The role of home equity, debt, and access to credit," Working Paper 1305, Federal Reserve Bank of Cleveland.
- D1 - Microeconomics - - Household Behavior
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-26 (All new papers)
- NEP-MAC-2013-09-26 (Macroeconomics)
- NEP-MIG-2013-09-26 (Economics of Human Migration)
- NEP-URE-2013-09-26 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:ner:carlos:info:hdl:10016/548 is not listed on IDEAS
- Sam Schulhofer-Wohl, 2010.
"Negative equity does not reduce homeowners' mobility,"
682, Federal Reserve Bank of Minneapolis.
- Sam Schulhofer-Wohl, 2012. "Negative equity does not reduce homeowners’ mobility," Quarterly Review, Federal Reserve Bank of Minneapolis.
- Sam Schulhofer-Wohl, 2011. "Negative Equity Does Not Reduce Homeowners' Mobility," NBER Working Papers 16701, National Bureau of Economic Research, Inc.
- Antonia Diaz & Maria Jose Luengo Prado, 2008.
"On the User Cost and Homeownership,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 11(3), pages 584-613, July.
- repec:ner:carlos:info:hdl:10016/431 is not listed on IDEAS
- Antonia Díaz & María José Luengo-Prado, 2010.
"The Wealth Distribution With Durable Goods,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(1), pages 143-170, 02.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.