Almost Famous: The Short- and Long-Term Effects of Housing Wealth Shocks on Career Decisions

77 Pages Posted: 16 Dec 2019 Last revised: 18 May 2021

See all articles by Jacelly Cespedes

Jacelly Cespedes

University of Minnesota - Carlson School of Management

Zack Liu

University of Houston - Department of Finance

Carlos Parra

Pontifical Catholic University of Chile - School of Business

Date Written: May 17, 2021

Abstract

Using a novel data set of career histories in the film industry, we study the effect of housing wealth shocks on the quality of jobs that individuals pursue. Homeowners facing greater declines in local house price reduce their participation in high-quality projects, such as big-budget films and productions with award-winning talent, while increasing their involvement in low-quality films. Importantly, renters are not affected by these shocks. Consistent with individuals using home equity during job searches, these negative shocks have a greater impact on lower-equity and less-wealthy homeowners. Moreover, house price declines from the housing crisis also affect long-term career outcomes.

Keywords: Job Search, Long-term Career Effects, Housing Wealth Shocks, Home Equity Extraction

Suggested Citation

Cespedes, Jacelly and Liu, Zack and Parra, Carlos, Almost Famous: The Short- and Long-Term Effects of Housing Wealth Shocks on Career Decisions (May 17, 2021). Available at SSRN: https://ssrn.com/abstract=3491426 or http://dx.doi.org/10.2139/ssrn.3491426

Jacelly Cespedes

University of Minnesota - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

HOME PAGE: http://sites.google.com/site/jacellycespedes/

Zack Liu (Contact Author)

University of Houston - Department of Finance ( email )

Houston, TX 77204
United States

Carlos Parra

Pontifical Catholic University of Chile - School of Business ( email )

Vicuna Mackenna 4860
Santiago
Chile

HOME PAGE: http://www.carlosrparra.com/

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