Wage Garnishment in the United States: New Facts from Administrative Payroll Records
Wage garnishment allows creditors to deduct money directly from workers’ paychecks to re-pay defaulted debts. We document new facts about wage garnishment between 2014–2019 using data from a large payroll processor who distributes paychecks to approximately 20%of U.S. private-sector workers. As of 2019, over one in every 100 workers was being garnished for delinquent debt. The average garnished worker experiences garnishment for five months, during which approximately 11% of gross earnings is remitted to their creditor(s). The beginning of a new garnishment is associated with an increase in job turnover rates but no intensive margin change in hours worked.
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Copy CitationAnthony A. DeFusco, Brandon M. Enriquez, and Margaret B. Yellen, "Wage Garnishment in the United States: New Facts from Administrative Payroll Records," NBER Working Paper 30724 (2022), https://doi.org/10.3386/w30724.Download Citation
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Published Versions
Anthony A. DeFusco & Brandon Enriquez & Maggie Yellen, 2024. "Wage Garnishment in the United States: New Facts from Administrative Payroll Records," American Economic Review: Insights, vol 6(1), pages 38-54. citation courtesy of 
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