We examine the relationship between housing equity and wage earnings. We first provide a simple model of wage bargaining where failure leads to both job loss and mortgage default. Moreover, foreclosure generates disutility beyond selling a home. We test this prediction using nine waves of the...

During the Global Financial Crisis, there were increasing concerns about the effects of mortgage market activity on the stability of the financial system. Given the important role of banks for extending mortgage funding, how does the legal environment regarding mortgage default impact mortgage...

During the Global Financial Crisis, there were increasing concerns about the effects of mortgage market activity on the stability of the financial system. Given the important role of banks for extending mortgage funding, how does the legal environment regarding mortgage default impact mortgage...

We examine the relationship between housing equity and wage earnings. We first provide a simple model of wage bargaining where failure leads to both job loss and mortgage default. Moreover, foreclosure generates disutility beyond selling a home. We test this prediction using nine waves of the...