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

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Standard

Household Liquidity Constraints and Labor Market Outcomes : Evidence from a Danish Mortgage Reform. / He, Alex Xi; Maire, Daniel Le.

I: Journal of Finance, Bind 78, Nr. 6, 2023, s. 3251-3298.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

He, AX & Maire, DL 2023, 'Household Liquidity Constraints and Labor Market Outcomes: Evidence from a Danish Mortgage Reform', Journal of Finance, bind 78, nr. 6, s. 3251-3298. https://doi.org/10.1111/jofi.13277

APA

He, A. X., & Maire, D. L. (2023). Household Liquidity Constraints and Labor Market Outcomes: Evidence from a Danish Mortgage Reform. Journal of Finance, 78(6), 3251-3298. https://doi.org/10.1111/jofi.13277

Vancouver

He AX, Maire DL. Household Liquidity Constraints and Labor Market Outcomes: Evidence from a Danish Mortgage Reform. Journal of Finance. 2023;78(6):3251-3298. https://doi.org/10.1111/jofi.13277

Author

He, Alex Xi ; Maire, Daniel Le. / Household Liquidity Constraints and Labor Market Outcomes : Evidence from a Danish Mortgage Reform. I: Journal of Finance. 2023 ; Bind 78, Nr. 6. s. 3251-3298.

Bibtex

@article{e6d54edcefe64277b5e00b3e3bd03844,
title = "Household Liquidity Constraints and Labor Market Outcomes: Evidence from a Danish Mortgage Reform",
abstract = "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.",
author = "He, {Alex Xi} and Maire, {Daniel Le}",
note = "Publisher Copyright: {\textcopyright} 2023 the American Finance Association.",
year = "2023",
doi = "10.1111/jofi.13277",
language = "English",
volume = "78",
pages = "3251--3298",
journal = "The Journal of Finance",
issn = "0022-1082",
publisher = "Wiley",
number = "6",

}

RIS

TY - JOUR

T1 - Household Liquidity Constraints and Labor Market Outcomes

T2 - Evidence from a Danish Mortgage Reform

AU - He, Alex Xi

AU - Maire, Daniel Le

N1 - Publisher Copyright: © 2023 the American Finance Association.

PY - 2023

Y1 - 2023

N2 - 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.

AB - 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.

U2 - 10.1111/jofi.13277

DO - 10.1111/jofi.13277

M3 - Journal article

AN - SCOPUS:85171867898

VL - 78

SP - 3251

EP - 3298

JO - The Journal of Finance

JF - The Journal of Finance

SN - 0022-1082

IS - 6

ER -

ID: 371621546