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Author: Rendon, Silvio Roberto
Resulting in 5 citations.
1. Rendon, Silvio Roberto
Does Wealth Explain Black-White Differences in Early Employment Careers?
Journal of Business and Economic Statistics 25,4 (October 2007): 484-500.
Also: http://pubs.amstat.org/doi/abs/10.1198/073500107000000124
Cohort(s): NLSY79
Publisher: American Statistical Association
Keyword(s): Discrimination; Economics of Minorities; Income; Job Search; Labor Market Demographics; Racial Differences; Wage Gap; Wealth

In this article I inquire about the effects initial wealth has on black-white differences in early employment careers. I set up a dynamic model in which individuals simultaneously search for a job and accumulate wealth, and fit it to data from the National Longitudinal Survey (1979-cohort). Regime changes and decompositions of racial differences reveal that differences in the labor market environment and in preferences account fully for racial gaps in wealth and in wages persisting several years after high school graduation. Differences in initial wealth partially explain differences in early employment careers.
Bibliography Citation
Rendon, Silvio Roberto. "Does Wealth Explain Black-White Differences in Early Employment Careers?" Journal of Business and Economic Statistics 25,4 (October 2007): 484-500.
2. Rendon, Silvio Roberto
Job Search and Asset Accumulation Under Borrowing Constraints
Ph.D. Dissertation, New York University, 1997
Cohort(s): NLSY79
Publisher: UMI - University Microfilms, Bell and Howell Information and Learning
Keyword(s): Assets; Job Search; Labor Economics; Labor Market Demographics; Labor Market Surveys; Transfers, Financial; Wage Effects

In this thesis, I show how borrowing constraints and job search interact. Assets influence job search outcomes by allowing wealthier people to be more selective and obtain higher wages, so that initial wealth positively affects success in the labor market. On the other hand, employment transitions influence asset accumulation: unemployed individuals maintain their consumption by running down their assets, and employed agents save to buffer against future unemployment spells and future lower wages. I fit the model to data from the National Longitudinal Survey (1979-cohort) and I quantify the two main effects mentioned above. A permanent decrease of $100 in unemployment net transfers leads to a decrease in assets holdings of $17 for blacks and $183 for whites twenty quarters after high school graduation. I also show that most of the wage differences across people are accounted for by differences in their labor market environments, rather than by differences in their initial wealth. Twenty quarters after leaving high school, an individual who started off with $2,000 of initial assets can have quarterly wages $50 higher than an individual who started off with no assets. In particular, if blacks had the labor market environment of whites, their quarterly wages twenty quarters after graduation would be $3,974 and not $3,384. This would be still below the $4,048 quarterly wages of whites.
Bibliography Citation
Rendon, Silvio Roberto. Job Search and Asset Accumulation Under Borrowing Constraints. Ph.D. Dissertation, New York University, 1997.
3. Rendon, Silvio Roberto
Job Search and Asset Accumulation Under Borrowing Constraints
International Economic Review 47,1 (February 2006): 233-263.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2354.2006.00378.x/abstract
Cohort(s): NLSY79
Publisher: U.S. International Trade Commission
Keyword(s): Assets; Job Search; Quits; Wealth

This article examines the relationship between wealth accumulation and job search dynamics. It proposes a model in which risk-averse individuals search for jobs, save, and borrow to smooth their consumption. One motivation for accumulating wealth is to finance voluntary quits in order to search for better jobs. Using data on men from the National Longitudinal Survey (1979 cohort), I estimate the individual's dynamic decision problem. The results show that borrowing constraints are tight and reinforce the influence of wealth on job acceptance decisions, namely that more initial wealth and access to larger amounts of credit increase wages and unemployment duration. [ABSTRACT FROM AUTHOR]
Bibliography Citation
Rendon, Silvio Roberto. "Job Search and Asset Accumulation Under Borrowing Constraints." International Economic Review 47,1 (February 2006): 233-263.
4. Rendon, Silvio Roberto
Quella, Núria
Behind the Great Recession: Job Search and Housing Decisions
IZA Discussion Paper No. 7773 , Institute for the Study of Labor (IZA), December 2013
Cohort(s): NLSY79
Publisher: Institute for the Study of Labor (IZA)
Keyword(s): Credit/Credit Constraint; Home Ownership; Housing/Housing Characteristics/Types; Job Search; Unemployment Rate

Permission to reprint the abstract has not been received from the publisher.

In this paper we analyze a mechanism that is particularly relevant to the workings of the Great Recession: we explain how easier home financing and higher homeownership rates increase unemployment rates. To this purpose we build a model of job search with liquid wealth accumulation and consumption of housing that can be rented, bought on credit, or sold. In our model, more relaxed house credit conditions increase workers' reservation wages, making them more selective in their job search. More selective job searches deteriorate employment transitions: job finding and job-to-job transitions rates decline while job loss rates increase, causing the overall unemployment rate to rise.We estimate this model structurally using NLSY data from 1978 until 2005. We find that more relaxed housing lending conditions, particularly lower downpayment requirements, increase unemployment rates by 6 percent points. We also find that declining labor demand decreases homeownership rates by 14 percent points.
Bibliography Citation
Rendon, Silvio Roberto and Núria Quella. "Behind the Great Recession: Job Search and Housing Decisions." IZA Discussion Paper No. 7773 , Institute for the Study of Labor (IZA), December 2013.
5. Rendon, Silvio Roberto
Quella, Núria
Interactions between Job Search and Housing Decisions: A Structural Estimation
Working Paper No. 15-27, Federal Reserve Bank of Philadelphia, July 2015
Cohort(s): NLSY79
Publisher: Federal Reserve Bank of Philadelphia
Keyword(s): Credit/Credit Constraint; Home Ownership; Housing/Housing Characteristics/Types; Job Search; Unemployment Rate

Permission to reprint the abstract has not been received from the publisher.

In this paper, we investigate to what extent shocks in housing and financial markets account for wage and employment variations in a frictional labor market. To explain these interactions, we use a model of job search with accumulation of wealth as liquid funds and residential real estate, in which house prices are randomly persistent. First, we show that reservation wages and unemployment are increasing in total wealth. And, second, we show that reservation wages and unemployment are also responsive to the composition of wealth. Specifically, when house prices are expected to rise, holding a larger share of wealth as residential real estate tends to increase reservation wages, which deteriorates employment transitions and increases unemployment. We estimate our model structurally using National Longitudinal Survey of Youth data from 1978 to 2005, and we find that more relaxed house Financing conditions, in particular lower down payment requirements, decrease employment rates by 5 percentage points in the short run and by 2 percentage points in the long run. We also find that worse labor market conditions immediately increase homeownership rates by up to 5 percent points, whereas in the long run homeownership decreases by 8 percentage points.
Bibliography Citation
Rendon, Silvio Roberto and Núria Quella. "Interactions between Job Search and Housing Decisions: A Structural Estimation." Working Paper No. 15-27, Federal Reserve Bank of Philadelphia, July 2015.