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dc.contributor.authorFagereng, Andreas
dc.contributor.authorOnshuus, Helene
dc.contributor.authorTorstensen, Kjersti N.
dc.date.accessioned2025-01-15T10:15:41Z
dc.date.available2025-01-15T10:15:41Z
dc.date.issued2024
dc.identifier.isbn978-82-8379-314-7
dc.identifier.issn1502-8143
dc.identifier.urihttps://hdl.handle.net/11250/3172760
dc.description.abstractWe use detailed Norwegian administrative data to identify the income loss associated with the onset of unemployment and analyze the corresponding consumption expenditure response and the extent to which this response is related to household balance sheet components. Unemployment results in a significant, long-term decline in income. Consumption decreases by about one-third to one-half of the post-tax income reduction. This reduction is less pronounced for liquid households and more for indebted ones. Although both debt and liquidity impact consumption patterns, debt has a predominant influence, especially for households holding substantial amounts of both. These households, despite their liquidity, also reduce their consumption upon unemployment, while consistently dedicating a substantial part of their disposable income to mortgage commitments. Furthermore, we investigate heterogeneity along other important margins such as family composition and child age. Finally, the patterns of our spending responses (measured as the marginal propensity to consume, the MPC) are found to be more pronounced during recessions.en_US
dc.language.isoengen_US
dc.publisherNorges Banken_US
dc.relation.ispartofseriesWorking paper;6/2024
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 Internasjonal*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/deed.no*
dc.subjectunemploymenten_US
dc.subjecthousehold financeen_US
dc.subjectconsumption expenditureen_US
dc.subjectconsumption smoothingen_US
dc.subjecthousehold heterogeneityen_US
dc.titleThe consumption expenditure response to unemployment: evidence from Norwegian householdsen_US
dc.typeWorking paperen_US
dc.description.versionpublishedVersionen_US
dc.subject.nsiVDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212en_US
dc.source.pagenumber42en_US


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Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal