RT Journal Article SR Electronic T1 Borrowing During Unemployment JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 383 OP 412 DO 10.3368/jhr.43.2.383 VO 43 IS 2 A1 James X. Sullivan YR 2008 UL http://jhr.uwpress.org/content/43/2/383.abstract AB This paper examines whether unsecured credit markets help disadvantaged households supplement temporary shortfalls in earnings by investigating how unsecured debt responds to unemployment-induced earnings losses. Results indicate that very low-asset households—those in the bottom decile of total assets—do not borrow in response to these shortfalls. However, other low-asset households do borrow, increasing unsecured debt by more than 11 cents per dollar of earnings lost. In contrast, wealthy households do not increase unsecured debt during unemployment. The evidence suggests that very low-asset households do not have sufficient access to unsecured credit to smooth consumption over transitory unemployment spells.