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How Does Credit Access Affect Job-Search Outcomes and Sorting?

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Abstract

How does access to consumer credit affect the job finding behavior of displaced workers? Are these workers looking for jobs at larger and more productive firms? What is the impact of consumer credit on the amount of time it takes to find a job? In recent work with Ethan Cohen-Cole we explore these questions by building a new data set of individual credit reports (from TransUnion) merged with administrative earnings data. We describe our approach and our results in this post.

Suggested Citation

  • Kyle F. Herkenhoff & Gordon Phillips, 2020. "How Does Credit Access Affect Job-Search Outcomes and Sorting?," Liberty Street Economics 20200304d, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:87568
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    Keywords

    Unemployment; Credit;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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