Training in the Great Recession – Evidence from an Individual Perspective

Evidence from the Great Recession

Foreclosure Externalities and Individual Well-being: Evidence from the Great Recession

Using microdata from CoreLogic and Gallup between 2008 and 2014, we study the impact of foreclosures on individual well-being. We identify the causal effect of foreclosures by instrumenting them using variation in interest rate spikes associated with different types of adjustable rate mortgages (ARMs), conditional on controls and zipcode and time fixed effects. We find that a 10% rise in forecl...

Immigrants Equilibrate Local Labor Markets: Evidence from the Great Recession.

This paper demonstrates that low-skilled Mexican-born immigrants' location choices in the U.S. respond strongly to changes in local labor demand, and that this geographic elasticity helps equalize spatial differences in labor market outcomes for low-skilled native workers, who are much less responsive. We leverage the substantial geographic variation in employment losses that occurred during Gr...

Macroeconomic Experiences and Expectations: A Perspective on the Great Recession∗

Life-time experiences shape macroeconomic expectations. Young people, endowed a small experience set, are particularly prone to rely on very recent data when forming expectations. I illustrate these patterns with micro survey data on inflation, stock return, and house price appreciation expectations. In the case of asset return expectations, the tendency to extrapolate from recent data makes as...

A New Keynesian Perspective on the Great Recession

With an estimated New Keynesian model, this paper compares the “great recession” of 2007-09 to its two immediate predecessors in 1990-91 and 2001. The model attributes all three downturns to a similar mix of aggregate demand and supply disturbances. The most recent series of adverse shocks lasted longer and became more severe, however, prolonging and deepening the great recession. In addition, ...