Household Liquidity Constraints and Labor Market Outcomes: Evidence from a Danish Mortgage Reform

被引：2
|
作者：
He, Alex Xi [1 ,3 ]
Le Maire, Daniel [2 ]
机构：
[1] Univ Maryland, Robert H Smith Sch Business, College Pk, MD USA
[2] Univ Copenhagen, Copenhagen, Denmark
[3] Univ Maryland, Robert H Smith Sch Business, 4411 Munching Hall, College Pk, MD 20742 USA
来源：
JOURNAL OF FINANCE | 2023年 / 78卷 / 06期
关键词：
UNEMPLOYMENT-INSURANCE; CREDIT ACCESS; DEBT; CONSUMPTION; BENEFITS; EQUITY; DURATION; WEALTH; IMPACT; POLICY;
D O I：
10.1111/jofi.13277
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We study the causal effect of liquidity constraints on individual labor market outcomes by exploiting the 1992 mortgage reform in Denmark, which for the first time allowed homeowners to borrow against housing equity for nonhousing purposes. Following the reform, liquidity-constrained homeowners increased debt levels and had higher earnings growth and lower employment rates. The option to borrow against housing equity enabled liquidity-constrained individuals to move to high-wage jobs and invest in valuable human and physical capital. The results imply that relaxing household liquidity constraints during recessions can create better job matches, potentially increasing earnings and output in the longer run.
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页码：3251 / 3298
页数：48
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