Doctoral Dissertation Research: The Effects of Bankruptcy Across Credit and Labor Markets

University Of Washington, Seattle WA

Investigators

Abstract

SES: 1028387 PI: Barbara F. Reskin Co-PI: Michelle Maroto Institution: University of Washington Cumulative disadvantage theory predicts divergence over time between individuals, where one person builds resources, another loses them. This project examines the accumulation of disadvantage by studying the determinants and consequences of bankruptcy. Bankruptcy offers an opportunity to purge previous debt, but it can be a stigmatizing process with later negative outcomes including job and income loss. A model is tested that depicts a cycle of job loss, increased debt, and bankruptcy over time as part of a process of cumulative disadvantage. Two longitudinal datasets are examined: the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics to estimate predictors and outcomes of bankruptcy. Broader Impacts: A better understanding of the causes and consequences of bankruptcy can aid in its prevention and in the mitigation of adverse consequences after the event.