How Do Households Respond to Job Loss? Lessons from Multiple High-Frequency Data Sets

Arbeitspapier

How do households respond to job loss, and which self-insurance channels are most important? By linking customer data from the largest bank in Denmark with information from government administrative registers, we quantify a broad range of responses to job loss in a unified empirical framework. Two response margins stand out: during the first 24 months after job loss, households reduce spending by 30% of the income loss while reduced saving in liquid assets accounts for 50%. Other response margins highlighted in the literature - spousal labor supply, private transfers, home equity extraction, mortgage refinancing, and consumer credit - are less important.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CEBI Working Paper Series ; No. 12/20

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Household Saving; Personal Finance ; Unemployment Insurance; Severance Pay; Plant Closings
• Thema: Household economics ; unemployment ; self-insurance ; transaction data

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Andersen, Asger Lau ; Jensen, Amalie Sofie ; Johannesen, Niels ; Kreiner, Claus Thustrup ; Leth-Petersen, Søren ; Sheridan, Adam
• Ereignis: Veröffentlichung
• (wer): University of Copenhagen, Department of Economics, Center for Economic Behavior and Inequality (CEBI)
• (wo): Copenhagen
• (wann): 2020

Weitere Informationen

• Handle: http://hdl.handle.net/10419/258926
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ