Title
Financial Inclusion Across the United States
Author(s)
Motohiro Yogo Motohiro Yogo (Princeton University and NBER)
Andrew Whitten Andrew Whitten (U.S. Department of the Treasury)
Natalie Cox 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.
Creation Date
2021-12
Section URL ID
Paper Number
2021-28
URL
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3934498
File Function
Jel
D14, G51
Keyword(s)
Financial participation, Household finance, Inequality, Racial disparities, Tax policy
Suppress
false
Series
13