Do Household Wealth Shocks Affect Productivity? Evidence from Innovative Workers During the Great Recession

• 成果类型: Article
• 署名作者: Bernstein, Shai; Mcquade, Timothy; Townsend, Richard R.
• 署名单位: Harvard University; National Bureau of Economic Research; Stanford University; University of California System; University of California San Diego
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12976
• 发表日期: 2021
• 页码: 57-111
• 关键词: research-and-development; negative equity; loss aversion; HEALTH; allocation; time; foreclosure; consumption; INVESTMENT; ECONOMICS

摘要

We investigate how the deterioration of household balance sheets affects worker productivity, and in turn economic downturns. Specifically, we compare the output of innovative workers who experienced differential declines in housing wealth during the financial crisis but were employed at the same firm and lived in the same metropolitan area. We find that, following a negative wealth shock, innovative workers become less productive and generate lower economic value for their firms. The reduction in innovative output is not driven by workers switching to less innovative firms or positions. These effects are more pronounced among workers at greater risk of financial distress.