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Unemployment risk and over-indebtedness

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  • Du Caju, Philip
  • Rycx, François
  • Tojerow, Ilan

Abstract

We study how unemployment affects the over-indebtedness of households using the new European Household Finance and Consumption Survey (HFCS). First, we assess the role of different labor market statuses (i.e. employed, unemployed, disabled, retired, etc.) and other household characteristics (i.e. demographics, housing status, household wealth and income, etc.) to determine the likelihood of over-indebtedness. We explore these relationships both at the Euro area level and through country-specific regressions. This approach captures country-specific institutional effects concerning all the different factors which can explain household indebtedness in its most severe form. We also examine the role that each country JEL Classification: D14, D91, J12

Suggested Citation

  • Du Caju, Philip & Rycx, François & Tojerow, Ilan, 2016. "Unemployment risk and over-indebtedness," Working Paper Series 1908, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:20161908
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    File URL: https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp1908.en.pdf
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    References listed on IDEAS

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    Cited by:

    1. repec:nbb:ecrart:y:2018:m:june:i:i:p:97-114 is not listed on IDEAS
    2. repec:bis:bisifc:46-11 is not listed on IDEAS

    More about this item

    Keywords

    financial fragility; HFCS; household finance; labor market status; over-indebtedness; unemployment;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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