Being " Underwater " on Your Mortgage Reduces Your Earnings

January 07, 2014

Economic Fact 
Being " Underwater " on Your Mortgage Reduces Your Earnings ! 
USA example : 
Why has wage growth been anemic in the current U.S. economic recovery, despite strong productivity gains? 
One reason may be that many homeowners have owed their banks - MORE  than their homes are worth, and being underwater on a mortgage depresses earnings  .

 Specifically, having mortgage debt that EXCEEDS  the home price lowers one’s current earnings by 3.7% . 
Reason ? 
Apparently because underwater homeowners accept lower wages to avoid job loss, which could lead to mortgage default.
Research conducted by : 
SOURCE: Negative equity and wages