Bad Credit, No Problem? Credit and Labor Market Consequences of Bad Credit Reports

• 成果类型: Article
• 署名作者: Dobbie, Will; Goldsmith-Pinkham, Paul; Mahoney, Neale; Song, Jae
• 署名单位: Harvard University; National Bureau of Economic Research; Yale University; Stanford University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12954
• 发表日期: 2020
• 页码: 2377-2419
• 关键词: Consumer bankruptcy; liquidity constraints

摘要

We study the financial and labor market impacts of bad credit reports. Using difference-in-differences variation from the staggered removal of bankruptcy flags, we show that bankruptcy flag removal leads to economically large increases in credit limits and borrowing. Using administrative tax records linked to personal bankruptcy records, we estimate economically small effects of flag removal on employment and earnings outcomes. We rationalize these contrasting results by showing that, conditional on basic observables, hidden bankruptcy flags are strongly correlated with adverse credit market outcomes but have no predictive power for measures of job performance.