Household leverage and mental health fragility

dc.contributor.author Andersen, Asger Lau
dc.contributor.author Iyer, Rajkamal
dc.contributor.author Johannesen, Niels
dc.contributor.author Jørgensen, Mia
dc.contributor.author Peydró, José-Luis
dc.date.accessioned 2023-04-28T11:45:25Z
dc.date.available 2023-04-28T11:45:25Z
dc.date.issued 2022-11
dc.description.abstract We use detailed administrative records to show that high household leverage increases mental health fragility, with persistent negative economic effects. After adverse life events, e.g. heart attacks or job losses, individuals with higher ex ante leverage experience larger increases in mental health problems. The effects are long-lasting and stronger in times of financial crisis. Parallel pre-trends, robustness to non-parametric controls, and IV estimation suggest the results are not driven by confounding unobservables. High leverage is also associated with worse long-run earnings dynamics at the time when loan arrears and mental health problems emerge, suggesting tenacious scarring effects of leverage.ca
dc.format.mimetype application/pdf*
dc.identifier.uri http://hdl.handle.net/10230/56619
dc.language.iso engca
dc.rights.accessRights info:eu-repo/semantics/openAccessca
dc.title Household leverage and mental health fragilityca
dc.type info:eu-repo/semantics/workingPaperca

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