Plans having multiple financing have significantly more low income specialists, however, less reasonable riches gurus
18 Predicated on participant zipcodes, research of IXI Business are used to impute non-retirement household economic wide range and you will home income (find having information on home money and investable possessions study). Low wide range domiciles were classified due to the fact with holdings below $25,000; high-riches home, over $one hundred,100. Low-earnings homes had income lower than $thirty-five,000; high-earnings domiciles, significantly more than $87,five-hundred.
19 Because of analysis limit, we really do not observe participants’ education account; Utkus and you may More youthful (2011) and you will Li and you will Smith (2010) find that large experienced everyone is less likely to simply take package loans.
All of our see is the fact none transform from recordkeepers neither revenue off a business department is related to employee need for package financing
20 Whenever an associate defaults to your a great loan, the newest default is usually filed after the fresh new quarter following one-fourth where in actuality the work termination happens. I for this reason make use of the past around three-times average unemployment speed within condition peak since the a regressor, lagged by thirty day period. I also experimented with a simple around three-few days lagged jobless rate, usually the one-day lagged rate, plus the latest times rates as robustness checks, with show exactly like those individuals reported less than.