dc.contributor.author | Kabaş, Gazi | |
dc.contributor.author | Roszbach, Kasper | |
dc.date.accessioned | 2021-12-13T07:24:07Z | |
dc.date.available | 2021-12-13T07:24:07Z | |
dc.date.issued | 2021 | |
dc.identifier.isbn | 978-82-8379-212-6 | |
dc.identifier.issn | 1502-8190 | |
dc.identifier.uri | https://hdl.handle.net/11250/2833887 | |
dc.description.abstract | Does household leverage matter for worker job search, matching in the labor market, and wages? Theoretically, household leverage can have opposing effects on the labor market through debt-overhang and liquidity constraint channels. To test which channel dominates empirically, we exploit the introduction of a loan-to-value ratio restriction in Norway that exogenously reduces household leverage. Focusing on a sample of displaced workers who bought a house before losing their jobs due to mass layoffs, we find that a reduction in leverage raises the subsequent wages of these workers. Lower leverage enables workers to search longer, find jobs in higher-paying firms, and switch into new occupations and industries. The positive effect on wages is persistent and more pronounced for young and highly-educated workers who are more likely to benefit from the effects of a reduction in leverage on job search. Our results indicate that in addition to reducing financial stability risks, policies limiting household leverage can improve workers’ labor market outcomes. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | Norges Bank | en_US |
dc.relation.ispartofseries | Working paper;14/2021 | |
dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no | * |
dc.subject | household leverage | en_US |
dc.subject | household debt | en_US |
dc.subject | job displacement | en_US |
dc.subject | job search | en_US |
dc.subject | macro prudential policy | en_US |
dc.subject | JEL: E21 | en_US |
dc.subject | JEL: G21 | en_US |
dc.subject | JEL: G51 | en_US |
dc.subject | JEL: J21 | en_US |
dc.title | Household Leverage and Labor Market Outcomes : Evidence from a Macroprudential Mortgage Restriction | en_US |
dc.type | Working paper | en_US |
dc.description.version | publishedVersion | en_US |
dc.subject.nsi | VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 | en_US |
dc.source.pagenumber | 91 | en_US |