28 Pages Posted: 21 Jun 2008
Date Written: June 2008
We use nationally representative survey data from Mexico to compare households with savings accounts in formal financial institutions to their neighbors who do not have such accounts. The survey, which was conducted in 2005, contains information on nearly 5000 households. We find that while neighboring banked and unbanked households have similar demographic and occupational profiles, the former are more educated and have markedly greater wealth. The median banked household spends 32% more per capita than the median unbanked household, and the median per capita wealth in banked households is 88% higher than that in unbanked households. Our findings suggest that education levels, wealth and unobserved household attributes which might be correlated with wealth and education play a major role in explaining who is banked.
Keywords: unbanked, access to financial services, savings accounts, banking for the poor
JEL Classification: O16, O20, G21, D10
Suggested Citation: Suggested Citation
Djankov, Simeon and Miranda, Pedro C. and Seira, Enrique and Sharma, Siddharth, Who are the Unbanked? (June 2008). World Bank Policy Research Working Paper No. WPS4647. Available at SSRN: https://ssrn.com/abstract=1147873