학술논문
The Labor Market Effects of Credit Market Information.
Document Type
Article
Author
Source
Subject
*Labor market
*Financial market reaction
*Credit ratings
*Self-employment
*Default (Finance)
*Employment
*Credit scoring systems
Wage decreases
Causal models
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Language
ISSN
0893-9454
Abstract
We exploit a natural experiment to provide one of the first measurements of the causal effect of negative credit information on employment and earnings. We estimate that one additional year of negative credit information reduces employment by 3 percentage points and wage earnings by $1,000. In comparison, the decrease in credit is only one-fourth as large. Negative credit information also causes an increase in self-employment and a decrease in mobility. Further evidence suggests this cost of default is inefficiently borne by those most creditworthy among previous defaulters. [ABSTRACT FROM AUTHOR]