@article {351981,
	title = {"No More Credit Score" Employer Credit Check Banks and Signal Substitution},
	journal = {Forthcoming at Labour Economics},
	year = {Working Paper},
	abstract = {In the past decade, most states have banned or have considered banning the use of credit checks in hiring decisions, a screening tool that is widely used by employers. Using new Equifax data on employer credit checks, the Federal Reserve Bank of New York Consumer Credit Panel/Equifax, and the LEHD Origin-Destination Employment data, we show that these bans increased employment of residents in the lowest credit score areas. The largest gains occurred in higherpaying jobs and in the government-sector. At the same time, using a large database of job postings, we show that employers increased their demands for other signals of applicants{\textquoteright} job performance, like education and experience. On net, the changes induced by these bans generate relatively worse outcomes for those with mid-to-low credit scores, for those under 22 years old, and for Blacks, groups commonly thought to benefit from such legislation.},
	author = {Daniel Shoag and Joshua Ballance and Robert Clifford}
}
