Moving to a Job: The Role of Home Equity, Debt, and Access to Credit

55 Pages Posted: 17 May 2013

See all articles by Yuliya Demyanyk

Yuliya Demyanyk

University of Illinois at Chicago

Dmytro Hryshko

University of Alberta

Maria Jose Luengo-Prado

Indus Center for Academic Excellence

Bent E. Sørensen

University of Houston - Department of Economics; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 3 versions of this paper

Date Written: May 2013

Abstract

Using 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.

Keywords: credit contraint, credit reports, mobility, unemployment

JEL Classification: D1, E2

Suggested Citation

Demyanyk, Yuliya and Hryshko, Dmytro and Luengo-Prado, Maria Jose and Sorensen, Bent E., Moving to a Job: The Role of Home Equity, Debt, and Access to Credit (May 2013). CEPR Discussion Paper No. DP9474, Available at SSRN: https://ssrn.com/abstract=2266286

Yuliya Demyanyk (Contact Author)

University of Illinois at Chicago ( email )

1200 W Harrison St
Chicago, IL 60607
United States

Dmytro Hryshko

University of Alberta ( email )

Edmonton, Alberta T6G 2R3
Canada

Maria Jose Luengo-Prado

Indus Center for Academic Excellence ( email )

Bent E. Sorensen

University of Houston - Department of Economics ( email )

204 McElhinney Hall
Houston, TX 77204-5882
United States
713-743-3841 (Phone)
713-743-3798 (Fax)

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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