Author Type

Graduate Student

Date of Award

Fall 11-5-2025

Document Type

Dissertation

Publication Status

Version of Record

Submission Date

November 2025

Department

Finance

Degree Name

Doctor of Philosophy (PhD)

Thesis/Dissertation Advisor [Chair]

David Javakhadze

Abstract

This study investigates the associations of state-level regional economic indicators about the labor market and bankruptcy rates in United States. This research aims to fill a gap in the bankruptcy literature by analyzing how these factors are related to corporate and individual bankruptcy filings. The unemployment rate is the primary labor-market predictor of financial distress; I argue that a comprehensive analysis incorporating broader labor market statistics provides a more complete picture of bankruptcy trends.

Employing state-level panel data, the study extends prior research that mainly utilized cross-sectional or time-series data. This approach provides a detailed examination of how labor market indicators and bankruptcy rates have evolved across the United States. Using state-level labor-market variables and the rate of bankruptcy filings, my findings indicate that the employment-population ratio and labor force participation rate offer valuable insights into the determinants of bankruptcy rates when combined with the unemployment rate. By systematically exploring the literature, employing robust research methodologies, and analyzing state-level panel data, this essay aims to contribute to the academic and practical understanding of the economic drivers of bankruptcy. It advocates for a nuanced view of economic indicators to better predict and manage financial instability, positioning its findings within the broader discourse on economic resilience and bankruptcy's role in the United States economy.

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