Working Paper
Moving to a Job: The Role of Home Equity, Debt, and Access to Credit
Using individual-level credit reports merged with loan-level data on mortgages, we estimate how mobility relates to home equity and labor market conditions. We control for constant individual-specific traits with fixed effects and find that homeowners with negative home equity move to other metropolitan areas more than other homeowners. We use a dynamic quantitative model of consumption, housing, employment, and mobility to interpret our findings. The utility gain from accepting a higher-paid job in another area is negatively correlated with home equity. The relationship between home equity and mobility in the data is well replicated by the model.
Suggested Citation
Demyanyk, Yuliya, María José Luengo-Prado, and Bent E. Sørensen. 2013. “Moving to a Job: The Role of Home Equity, Debt, and Access to Credit .” Federal Reserve Bank of Cleveland, Working Paper No. 13-05. https://doi.org/10.26509/frbc-wp-201305
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