The Scarring Effects of Bankruptcy: Cumulative Disadvantage across Credit and Labor Markets

Autor/in	Maroto, Michelle
Titel	The Scarring Effects of Bankruptcy: Cumulative Disadvantage across Credit and Labor Markets
Quelle	In: Social Forces, 91 (2012) 1, S.99-130 (32 Seiten) PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0037-7732
DOI	10.1093/sf/sos095
Schlagwörter	Financial Problems; Labor Market; Credit (Finance); Longitudinal Studies; Disadvantaged; Debt (Financial); Social Bias; Employment; Salaries; Economic Factors; National Longitudinal Survey of Youth + Suchen Sie Ihr Suchwort? Labour market; Arbeitsmarkt; Credit; Kredit; Longitudinal study; Longitudinal method; Longitudinal methods; Längsschnittuntersuchung; Dienstverhältnis; Entlohnung; Gehalt; Ökonomischer Faktor
Abstract	As the recent economic crisis has demonstrated, inequality often spans credit and labor markets, supporting a system of cumulative disadvantage. Using data from the National Longitudinal Survey of Youth, this research draws on stigma, cumulative disadvantage and status characteristics theories to examine whether credit and labor markets intersect through the event of bankruptcy to disadvantage certain individuals over time. The transmission of bankruptcy's stigma across markets occurs in a specific legal setting where, even though the current U.S. Bankruptcy Code grants bankrupters a fresh start through debt forgiveness, the Fair Credit Reporting Act limits bankrupters' ability to begin anew because it permits employers to access credit reports. My findings highlight these ambiguities and show that, net of their previous labor market statuses, bankrupters spend less time working and have lower earnings than nonbankrupters. Thus, having become bankrupt exposes people to subsequent disadvantage in the labor market. (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10