We measured the annual number of single establishments and their employment and wages for those firms that moved across states and regions from 1994 to 2021. We found that in 2021, a total of 6,384 firms moved across state borders, almost twice the number than in 1994. As a percentage of the total firm population, the migrant share rose from 0.07%to 0.12% during this period. In 2020, more than 30% of migrant firms were in the professional, scientific, and technical services sector. Data show that the number of migrant firms generally grows in expansionary periods and declines or shows less growth during economic downturns. However, in the 2020 COVID-19 pandemic-induced recession, the number of migrant firms rose sharply. Although migrant firms move in and out of every state and region, data from 1994 to 2021 show that in-migration in the South has been consistently higher than out-migration. In the Northeast and Midwest regions, out-migration exceeded in-migration. In the West, in-migrations and out-migrations were generally in balance.
- Date Posted:
- June 6, 2023
By the end of 2021, borrowers subject to the payment freeze had an additional $1,500 in outstanding student loan balances relative to those that did not see a payment stoppage. Despite having higher cash on hand, borrowers do not use their additional liquidity to pay down other debt. In fact, household leverage rises as borrowers make higher payments on other loans, and mortgage, auto, and credit card debt rise. Overall, excluding student loans, household leverage increases by $1,200 (3%) for households subject to the pause. Student loan balances increase by a similar amount. The results suggest that the payment pause led to higher durable and non-durable consumption in the short term, but higher overall leverage, consistent with binding liquidity constraints. We find that the effects are concentrated among borrowers who have not previously been delinquent on a loan. These borrowers likely had no change in their supply of credit. Instead, their increased use of credit implies that their demand for credit increases as they have more liquidity.