RT Generic
T1 Job search and asset accumulation under borrowing constraints
A1 Rendón, Silvio
AB In this paper I show how borrowing constraints and job search interact. I fit a dynamic model to data from the National Longitudinal Survey (1979-cohort) and show that borrowing constraints are significant. Agents with more initial assets and more access to credit attain higher wages for several periods after high school graduation. The unemployed maintain their consumption by running down their assets, while the employed save to buffer against future unemployment spells. I also show that, unlike in models with exogenous income streams, unemployment transfers, by allowing agents to attain higher wages do not 'crowd out' but increase saving.
SN 2340-5031
YR 2002
FD 2002-10
LK https://hdl.handle.net/10016/279
UL https://hdl.handle.net/10016/279
LA eng
LA eng
DS e-Archivo
RD 22 may. 2024