Moving to a Job: The Role of Home Equity, Debt, and Access to Credit
55 Pages Posted: 17 May 2013
There are 3 versions of this paper
Moving to a Job: The Role of Home Equity, Debt, and Access to Credit
Moving to a Job: The Role of Home Equity, Debt, and Access to Credit
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: Suggested Citation
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