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Financial Inclusion Across the United States

Author

Listed:
  • Motohiro Yogo

    (Princeton University and NBER)

  • Andrew Whitten

    (U.S. Department of the Treasury)

  • Natalie Cox

    (Princeton University)

Abstract

We document new facts about bank and retirement account participation, based on the universe of U.S. households with a member aged 50 to 59 in administrative tax data. Financial participation is much higher than that reported in survey data, especially for low-income households. However, financial participation declines among low-income households from 2008 to 2018. Geographic variation in financial participation relates to income rather than racial composition or access to financial services. Based on instrumental variables, we estimate a large impact of access to employer retirement plans on retirement account participation for low- and middle-income households.

Suggested Citation

  • Motohiro Yogo & Andrew Whitten & Natalie Cox, 2021. "Financial Inclusion Across the United States," Working Papers 2021-28, Princeton University. Economics Department..
    • Handle: RePEc:pri:econom:2021-28
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    File URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3934498
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    More about this item

    Keywords

    Financial participation; Household finance; Inequality; Racial disparities; Tax policy;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

    NEP fields

    This paper has been announced in the following NEP Reports:

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