Life after default: Credit hardship and its effects

We analyze the impact of credit default on individual trajectories. Using a proprietary dataset for the years 2004-2020, we find that after default individuals relocate to cheaper areas. Importantly, default has long-lasting negative effects on income, credit score, total credit limit, and home-ownership status.AWe analyze the impact of credit default on individual trajectories. Using a proprietary dataset for the years 2004-2020, we find that after default individuals relocate to cheaper areas. Importantly, default has long-lasting negative effects on income, credit score, total credit limit, and home-ownership status.

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Year of publication:	2022
Authors:	De Giorgi, Giacomo ; Naguib, Costanza
Publisher:	Bern : University of Bern, Department of Economics
Subject:	mobility \| bankruptcy \| default \| credit \| income

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Series:	Discussion Papers ; 22-06
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1816405280 [GVK] hdl:10419/266511 [Handle] RePEc:ube:dpvwib:dp2206 [RePEc]
Classification:	J61 - Geographic Labor Mobility; Immigrant Workers ; g51 ; D12 - Consumer Economics: Empirical Analysis
Source:	EconStor

Persistent link: https://www.econbiz.de/10013461492