TY  - BOOK
AU  - Herkenhoff,Kyle F.
AU  - Ohanian,Lee E.
ED  - National Bureau of Economic Research.
TI  - Labor Market Dysfunction During the Great Recession
T2  - NBER working paper series
PY  - 2011///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - August 2011; Hardcopy version available to institutional subscribers
N2  - This paper documents the abnormally slow recovery in the labor market during the Great Recession, and analyzes how mortgage modification policies contributed to delayed recovery. By making modifications means-tested by reducing mortgage payments based on a borrower's current income, these programs change the incentive for households to relocate from a relatively poor labor market to a better labor market. We find that modifications raise the unemployment rate by about 0.5 percentage points, and reduce output by about 1 percent, reflecting both lower employment and lower productivity, which is the result of individuals losing skills as unemployment duration is longer
UR  - https://www.nber.org/papers/w17313
UR  - http://dx.doi.org/10.3386/w17313
ER  -