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.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Cleveland in its series Working Paper with number 1305.
Date of creation: 2013
Date of revision:
Other versions of this item:
- Demyanyk, Yuliya & Hryshko, Dmytro & Luengo-Prado, Maria Jose & Sørensen, Bent E, 2013. "Moving to a Job: The Role of Home Equity, Debt, and Access to Credit," CEPR Discussion Papers 9474, C.E.P.R. Discussion Papers.
- 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-2013-04-06 (All new papers)
- NEP-MIG-2013-04-06 (Economics of Human Migration)
- NEP-URE-2013-04-06 (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.:
- Sam Schulhofer-Wohl, 2010.
"Negative equity does not reduce homeowners' mobility,"
682, Federal Reserve Bank of Minneapolis.
- Schulhofer-Wohl, Sam, 2012. "Negative equity does not reduce homeowners’ mobility," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Feb, pages 1-17.
- 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.
- Antonia Díaz & Maria Jose Luengo-Prado, 2006.
"The Wealth Distribution With Durable Goods,"
Economics Working Papers
we067027, Universidad Carlos III, Departamento de Economía.
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