This paper studies the effects of household liquidity constraints on individual labor market outcomes by exploiting a … mortgage reform in Denmark in 1992, which for the first time allowed homeowners to borrow against housing equity for non …. The results imply that relaxing household liquidity constraints during recessions could potentially increase earnings and …

We assess the solidity and debt servicing capacity of Danish homeowners by simulating the impact on household budgets … negative economic margins means the household would not have been able to obtain its current debt from a credit institution … household budgets are tighter in sparsely populated municipalities and for highly indebted households. …