Real effects of workers' financial distress: Evidence from teacher spillovers

• 成果类型: Article
• 署名作者: Maturana, Gonzalo; Nickerson, Jordan
• 署名单位: Emory University; Boston College
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.09.001
• 发表日期: 2020
• 页码: 137-151
• 关键词: bankruptcy; labor productivity; economic shocks; Feedback effects; education

摘要

This paper studies the effects of financial distress on workers' productivity, using detailed data from the public school system in Texas. We show that the student passing rate in the median-sized grade decreases by 1.2 percentage points following a declaration of bankruptcy by one teacher in the grade. The effect of financial distress increases with the complexity of the task. Overall, our results suggest a potential feedback effect of worker financial distress on local economic conditions and thus contribute to the understanding of the propagation, and potential amplification, of shocks through a local economy. (C) 2019 The Authors. Published by Elsevier B.V.