Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171755
Authors: 
Demyanyk, Yuliya
Hryshko, Dmytro
Luengo-Prado, María José
Sørensen, Bent E.
Year of Publication: 
2016
Series/Report no.: 
Working Papers, Federal Reserve Bank of Boston 16-1
Abstract: 
Using individual-level credit reports merged with loan-level mortgage data, we estimate how mobility relates to home equity when labor markets are weak or strong. We control for constant individual-specific traits with fixed effects and find that homeowners with negative home equity move to other metropolitan areas more than other homeowners. We use a dynamic quantitative model of consumption, housing, employment, and mobility to interpret our findings. The model illustrates that the gain from accepting a job in another area outweighs the cost of disposing of underwater property and replicates the data well.
JEL: 
E21
J61
R23
Document Type: 
Working Paper

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