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The Effects of House Prices and Home Equity Extraction on Career Outcomes

Research output: Contribution to journalArticlepeer-review

Abstract

This paper investigates the effects of housing wealth shocks on workers’ career decisions related to job quality and long-term career outcomes. Using a novel data set of career histories in the film industry, we find that homeowners facing greater house price declines reduce participation in high-quality projects but increase involvement in low-quality films. Conversely, renters are not affected by these shocks. Consistent with individuals using home equity during job searches, these shocks have a greater impact on homeowners who extracted home equity during the housing boom. Moreover, house price declines from the housing crisis affect long-term career paths.

Original languageEnglish (US)
Pages (from-to)1-45
Number of pages45
JournalReview of Corporate Finance Studies
Volume15
Issue number1
DOIs
StatePublished - Feb 1 2026

Bibliographical note

Publisher Copyright:
© The Author(s) 2024. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved.

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