Q1. What are the contributions in this paper?
The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis, the Federal Reserve System, or the National Bureau of Economic Research.
The Impact of Foreclosure Delay on U.S. Employment
Kyle Herkenhoff,Lee E. Ohanian +1 more
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In this paper, the authors analyzed the impact of foreclosure delay on the US labor market and developed a search model in which foreclosure delay provides unemployed mortgagors with additional time to search for high-paying jobs.About:
This article is published in Review of Economic Dynamics.The article was published on 2019-01-01 and is currently open access. It has received 22 citations till now. The article focuses on the topics: Loss mitigation.read more
Figures
Figure 6: Model Homeowner Transitions, (No Delay Economy=Red Underlined Entries, Delay Economy= Black Entries) 
Figure 17: Mortgagor Employment Per Capita (PSID) 
Figure 1: Employment Per Capita among Mortgagors by Delinquency Status (Source: 2009-2011 PSID) 
Table 10 presents these results. The dependent variable is a dummy variable if the household is employed, and we include demographic, occupation, and industry controls. Columns (1) and (2) of Table 10 show that homeowners, as compared with renters, have a lower employment rate in states with slow foreclosure processes as compared with states with fast foreclosure processes. The magnitude of this effect ranges between a 0.4 percent to a 0.8 percent reduction in employment per capita depending on the control set, which is consistent with the results of our structural model presented Section 6. Columns (3) and (4) of Table 10 split the sample between pre-2007 and post-2007. We see that the impact 
Table 11: Spousal Employment Patterns During Delinquency. Dependent variable is employmeny indicator of spouse. Columns (1) and (2) include all heads coding all missing spousal employment statuses as zero, Columns (3) and (4) condition on the head being married (Source: PSID 2009-2011). 
Table 6: Steady State: Targeted Moments
Citations
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Locked in by leverage: Job search during the housing crisis
TL;DR: The authors examined how housing market distress affects job search and found that job seekers in areas with depressed housing markets apply for fewer jobs that require relocation, and with their search constrained geographically, job seekers broaden their search for lower-level positions nearby.
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Job Search under Debt: Aggregate Implications of Student Loans
TL;DR: In this paper, a dynamic equilibrium model of schooling, borrowing, and job search is developed to quantify the aggregate implications of student loans, showing that risk-averse agents under debt tend to search less and end up with lower-paid jobs.
Journal ArticleDOI
Financial Contracting with Enforcement Externalities
TL;DR: A theory of credit provision is developed in which enforceability of individual contracts is linked to aggregate behavior, and the central element behind this link is enforcement capacity, which is endogenously determined by investments in enforcement infrastructure.
Journal ArticleDOI
Foreclosure Spillovers and Individual Well-Being: Evidence from the Great Recession
TL;DR: This article explored the causal effect of foreclosure on individual well-being and social capital using plausibly exogenous variation in the timing of interest rate changes on different types of adjustable rate mortgages (ARMs).
Journal ArticleDOI
The College Wealth Divide: Education and Inequality in America, 1956-2016
TL;DR: In this paper, the authors studied wealth and income trends of households with and without a college degree in the United States since 1956 and found that a substantial college wealth premium has emerged since the 1980s, which is considerably larger than the college income premium.
References
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Book
Econometric Analysis of Cross Section and Panel Data
TL;DR: This is the essential companion to Jeffrey Wooldridge's widely-used graduate text Econometric Analysis of Cross Section and Panel Data (MIT Press, 2001).
Journal ArticleDOI
The Cyclical Behavior of Equilibrium Unemployment and Vacancies
TL;DR: In this article, the authors argue that the textbook search and matching model cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies in response to shocks of a plausible magnitude.
Journal ArticleDOI
Debt with Potential Repudiation: Theoretical and Empirical Analysis
Jonathan Eaton,Mark Gersovitz +1 more
Book
The European unemployment dilemma
TL;DR: The authors used a general equilibrium search model in which workers accumulate skills on the job and lose skills during unemployment, and impute the higher unemployment to welfare states' diminished ability to cope with more turbulent economic times, such as the ongoing restructuring from manufacturing to the service industry, adoption of new information technologies, and rapidly changing international economy.
Posted Content
Moral Hazard vs. Liquidity and Optimal Unemployment Insurance
Raj Chetty,Raj Chetty +1 more
TL;DR: The authors showed that 60 percent of the increase in unemployment durations caused by UI benefits is due to a "liquidity effect" rather than distortions in marginal incentives to search ("moral hazard") by combining two empirical strategies.