Members of highly indebted households are more likely to lose their jobs because they tend to be younger and are less likely to have a post-secondary degree or training.
10  Households are defined as “highly indebted”if their debt-to-income ratio, calculated as the total amount of debt divided by grosshousehold income, exceeds a certain threshold.This threshold was determined by using the Bank of Canada’s Household Risk Assessment Model (HRAM) to analyze which households, in different debtto-income categories, are more susceptible to arrears on their debt under a hypothetical stress scenario.See Cateau, Roberts and Zhou (2015).