Nothing Left to Lose? Changes Experienced by Detroit Low- and Moderate-Income Households During the Great Recession

55 Pages Posted: 11 Sep 2016

See all articles by Michael S. Barr

Michael S. Barr

University of Michigan Law School; University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy; University of Michigan, Center on Finance, Law, and Policy

Daniel Schaffa

University of Richmond School of Law

Date Written: September 8, 2016

Abstract

The Financial Crisis and ensuing Great Recession caused enormous hardship for households. Using original datasets, we examine the effects of the recession on a population many might think had nothing left to lose: low- and moderate-income households in the Detroit metropolitan area. We find that the Great Recession in fact imposed significant costs on these households, reducing employment and assets and increasing hardships in a wide variety of ways. Our findings suggest the need for more robust safety net policies and financial services that can help cushion the blows from sharp reductions in incomes and assets.

Suggested Citation

Barr, Michael S. and Schaffa, Daniel, Nothing Left to Lose? Changes Experienced by Detroit Low- and Moderate-Income Households During the Great Recession (September 8, 2016). U of Michigan Law & Econ Research Paper No. 16-019; Washington Center for Equitable Growth Working Paper; U of Michigan Law & Econ Research Paper No. 16-019; U of Michigan Public Law Research Paper No. 518. Available at SSRN: https://ssrn.com/abstract=2836589 or http://dx.doi.org/10.2139/ssrn.2836589

Michael S. Barr (Contact Author)

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
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734-936-2878 (Phone)
734-936-7514 (Fax)

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy ( email )

735 South State Street
4th Floor
Ann Arbor, MI 48109
United States

University of Michigan, Center on Finance, Law, and Policy ( email )

904 Legal Research
625 S. State Street
Ann Arbor, MI 48103
United States

Daniel Schaffa

University of Richmond School of Law ( email )

28 Westhampton Way
Richmond, VA 23173
United States

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