| Abstract: |
Many young employees work on a temporary basis, which entails significantly greater income risk than “permanent” work, even for jobs in the same occupation and at a similar wage. We find that this income uncertainty leads lenders to ration credit to temporary workers, precisely at the stage of life when permanent workers rely on mortgages to invest in housing and loans to smooth consumption and purchase durable goods. Labor laws that improve job security for permanent workers create a dual credit market alongside the dual labor market, making it harder for young adults to establish financial independence and new families.
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Biography:
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David Matsa is the Alan E. Peterson Distinguished Professor of Finance at the Kellogg School of Management, Northwestern University, and a Research Associate at the National Bureau of Economics Research.
He has published widely in finance and economics. Much of his research focuses on connections between the labor and financial markets from both corporate and household perspectives. On the corporate side, he studies how human capital affects firms’ evaluation and funding of investment projects. And on the household side, he studies how job and financial market instability affect worker’s financial resilience, where they work, and how they live. Professor Matsa’s recent research on corporate governance examines the determinants and effect of gender diversity among corporate directors and executives. His articles have appeared in leading journals, including the American Economic Review, the Quarterly Journal of Economics, the Journal of Finance, and many others.
On the Kellogg faculty since 2006, Professor Matsa teaches corporate finance and a seminar on business & society in Kellogg’s MBA program. He has served on the editorial board of the Journal of Finance and has received numerous research and teaching awards. Professor Matsa worked as a consultant at McKinsey & Company and received his Ph.D. in Economics from the Massachusetts Institute of Technology.
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