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

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

How Do Households Respond to Job Loss? Lessons from Multiple High-Frequency Data Sets. / Andersen, Asger Lau; Jensen, Amalie Sofie; Johannesen, Niels; Kreiner, Claus Thustrup; Leth-Petersen, Søren; Sheridan, Adam.

In: American Economic Journal: Applied Economics, Vol. 15, No. 4, 2023, p. 1-29.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Andersen, AL, Jensen, AS, Johannesen, N, Kreiner, CT, Leth-Petersen, S & Sheridan, A 2023, 'How Do Households Respond to Job Loss? Lessons from Multiple High-Frequency Data Sets', American Economic Journal: Applied Economics, vol. 15, no. 4, pp. 1-29. https://doi.org/10.2139/ssrn.3578410, https://doi.org/10.1257/app.20210206

APA

Andersen, A. L., Jensen, A. S., Johannesen, N., Kreiner, C. T., Leth-Petersen, S., & Sheridan, A. (2023). How Do Households Respond to Job Loss? Lessons from Multiple High-Frequency Data Sets. American Economic Journal: Applied Economics, 15(4), 1-29. https://doi.org/10.2139/ssrn.3578410, https://doi.org/10.1257/app.20210206

Vancouver

Andersen AL, Jensen AS, Johannesen N, Kreiner CT, Leth-Petersen S, Sheridan A. How Do Households Respond to Job Loss? Lessons from Multiple High-Frequency Data Sets. American Economic Journal: Applied Economics. 2023;15(4):1-29. https://doi.org/10.2139/ssrn.3578410, https://doi.org/10.1257/app.20210206

Author

Andersen, Asger Lau ; Jensen, Amalie Sofie ; Johannesen, Niels ; Kreiner, Claus Thustrup ; Leth-Petersen, Søren ; Sheridan, Adam. / How Do Households Respond to Job Loss? Lessons from Multiple High-Frequency Data Sets. In: American Economic Journal: Applied Economics. 2023 ; Vol. 15, No. 4. pp. 1-29.

Bibtex

@article{68b3894c149842739cb0580e1d49070a,
title = "How Do Households Respond to Job Loss?: Lessons from Multiple High-Frequency Data Sets",
abstract = "How much and through which channels do households self-insure against job loss? Combining data from a large bank and from government sources, we quantify a broad range of responses to job loss in a unified empirical framework. Cumulated over a two-year period, households reduce spending by 30% of their income loss. They mainly self-insure through adjustments of liquid balances, which account for 50% of the income loss. Other channels—spousal labor supply, private transfers, home equity extraction, mortgage refinancing, and consumer credit—contribute less to self-insurance. Both overall selfinsurance and the channels vary with household characteristics in intuitive ways. ",
author = "Andersen, {Asger Lau} and Jensen, {Amalie Sofie} and Niels Johannesen and Kreiner, {Claus Thustrup} and S{\o}ren Leth-Petersen and Adam Sheridan",
year = "2023",
doi = "10.2139/ssrn.3578410",
language = "English",
volume = "15",
pages = "1--29",
journal = "American Economic Journal: Applied Economics",
issn = "1945-7782",
publisher = "American Economic Association",
number = "4",

}

RIS

TY - JOUR

T1 - How Do Households Respond to Job Loss?

T2 - Lessons from Multiple High-Frequency Data Sets

AU - Andersen, Asger Lau

AU - Jensen, Amalie Sofie

AU - Johannesen, Niels

AU - Kreiner, Claus Thustrup

AU - Leth-Petersen, Søren

AU - Sheridan, Adam

PY - 2023

Y1 - 2023

N2 - How much and through which channels do households self-insure against job loss? Combining data from a large bank and from government sources, we quantify a broad range of responses to job loss in a unified empirical framework. Cumulated over a two-year period, households reduce spending by 30% of their income loss. They mainly self-insure through adjustments of liquid balances, which account for 50% of the income loss. Other channels—spousal labor supply, private transfers, home equity extraction, mortgage refinancing, and consumer credit—contribute less to self-insurance. Both overall selfinsurance and the channels vary with household characteristics in intuitive ways.

AB - How much and through which channels do households self-insure against job loss? Combining data from a large bank and from government sources, we quantify a broad range of responses to job loss in a unified empirical framework. Cumulated over a two-year period, households reduce spending by 30% of their income loss. They mainly self-insure through adjustments of liquid balances, which account for 50% of the income loss. Other channels—spousal labor supply, private transfers, home equity extraction, mortgage refinancing, and consumer credit—contribute less to self-insurance. Both overall selfinsurance and the channels vary with household characteristics in intuitive ways.

U2 - 10.2139/ssrn.3578410

DO - 10.2139/ssrn.3578410

M3 - Journal article

VL - 15

SP - 1

EP - 29

JO - American Economic Journal: Applied Economics

JF - American Economic Journal: Applied Economics

SN - 1945-7782

IS - 4

ER -

ID: 336458423