from the Cleveland Fed
– this post authored by Rawley Z. Heimer, Timothy Stehulak, and Caitlin Treanor
One way a household might handle financial distress is to relocate to another area that offers greater income opportunities. This article examines the impact of geographic mobility on consumer finances by focusing on the residents of “boom towns” – areas that saw a surge of growth in oil-drilling activity around 2010 and a bust thereafter. We find that residents who move after the bust experience stronger consumer financial health than residents who stay put.
Why and how some households maintain sound financial health and others do not is a subject that is attracting growing interest among academics and policymakers.