When workers lose their jobs, the financial pressures of becoming re-employed can be substantial. Recent research has found that, in general, the more available credit one has, the longer it takes to find a job, but the better the job fit.
Kyle Herkenhoff, an assistant economics professor at the University of Minnesota, discussed this finding in his paper “How Credit Constraints Impact Job Finding Rates, Sorting and Aggregate Output,” presented at the St. Louis Advances in Research (STLAR) Conference on April 7-8. In the video above, he discussed his work in an interview with St. Louis Fed Vice President and Economist David Andolfatto.
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