Losing a job often leads to lower earnings that stretch long beyond the time of unemployment. Yet it’s hard to know exactly what causes these lower lifetime earnings.
When home prices rise, households tend to borrow and spend more. But economists have had trouble identifying exactly what causes that relationship. Is it that when a house becomes worth more, borrowers are able to offer more collateral to secure a loan?
Despite the relatively large number of employees working in downtown Detroit, the city continues to be afflicted by urban blight, surrounded by a swath of vacant neighborhoods.