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Title: Job Search under Debt: Aggregate Implications of Student Loans
Resulting in 1 citation.
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Ji, Yan |
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Job Search under Debt: Aggregate Implications of Student Loans Journal of Monetary Economics published online (11 May 2020): DOI: 10.1016/j.jmoneco.2020.05.002. Also: https://www.sciencedirect.com/science/article/pii/S0304393220300672 Cohort(s): NLSY97 Publisher: Elsevier Keyword(s): Debt/Borrowing; Job Search; Student Loans / Student Aid A dynamic equilibrium model of schooling, borrowing, and job search is developed to quantify the aggregate implications of student loans. In my model, risk-averse agents under debt tend to search less and end up with lower-paid jobs. Calibrating the model using micro data, I show that student loans have significant effects on borrowers' job search decisions under the fixed repayment plan. The income-based repayment plan (IBR) largely alleviates the burden of debt repayment by insuring labor market outcomes, allowing borrowers to conduct a more adequate job search. In general equilibrium, IBR also increases social welfare by encouraging college attendance. |
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Bibliography Citation
Ji, Yan. "Job Search under Debt: Aggregate Implications of Student Loans." Journal of Monetary Economics published online (11 May 2020): DOI: 10.1016/j.jmoneco.2020.05.002.
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