Credit Constraints and Job Mobility

In: Journal of income distribution: an international journal of social economics, S. 34

Abstract

We estimate the probability of voluntary job change using data
from the Panel Study of Income Dynamics (PSID) and imputed values
for several different measures of financial stress from the Survey
of Consumer Finances (SCF). Our main finding is that single men are
more likely to respond to credit constraints by voluntarily switching
jobs. For married men, the effect depends on the type of financial
stress experienced. Our results suggest that the higher rate of job mobility
among single men can be attributed to both higher incidence of
credit constraints among this group as well as a differential response
to these constraints.