How Do Households Respond to Job Loss? Lessons from Multiple High-Frequency Data Sets
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How Do Households Respond to Job Loss? Lessons from Multiple High-Frequency Data Sets. / Andersen, Asger Lau; Jensen, Amalie Sofie; Johannesen, Niels; Kreiner, Claus Thustrup; Leth-Petersen, Søren; Sheridan, Adam.
I: American Economic Journal: Applied Economics, Bind 15, Nr. 4, 2023, s. 1-29.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - How Do Households Respond to Job Loss?
T2 - Lessons from Multiple High-Frequency Data Sets
AU - Andersen, Asger Lau
AU - Jensen, Amalie Sofie
AU - Johannesen, Niels
AU - Kreiner, Claus Thustrup
AU - Leth-Petersen, Søren
AU - Sheridan, Adam
PY - 2023
Y1 - 2023
N2 - How much and through which channels do households self-insure against job loss? Combining data from a large bank and from government sources, we quantify a broad range of responses to job loss in a unified empirical framework. Cumulated over a two-year period, households reduce spending by 30% of their income loss. They mainly self-insure through adjustments of liquid balances, which account for 50% of the income loss. Other channels—spousal labor supply, private transfers, home equity extraction, mortgage refinancing, and consumer credit—contribute less to self-insurance. Both overall selfinsurance and the channels vary with household characteristics in intuitive ways.
AB - How much and through which channels do households self-insure against job loss? Combining data from a large bank and from government sources, we quantify a broad range of responses to job loss in a unified empirical framework. Cumulated over a two-year period, households reduce spending by 30% of their income loss. They mainly self-insure through adjustments of liquid balances, which account for 50% of the income loss. Other channels—spousal labor supply, private transfers, home equity extraction, mortgage refinancing, and consumer credit—contribute less to self-insurance. Both overall selfinsurance and the channels vary with household characteristics in intuitive ways.
U2 - 10.2139/ssrn.3578410
DO - 10.2139/ssrn.3578410
M3 - Journal article
VL - 15
SP - 1
EP - 29
JO - American Economic Journal: Applied Economics
JF - American Economic Journal: Applied Economics
SN - 1945-7782
IS - 4
ER -
ID: 336458423