Who are the Unbanked?

28 Pages Posted: 21 Jun 2008  

Simeon Djankov

London School of Economics & Political Science (LSE); Peter G. Peterson Institute for International Economics

Pedro C. Miranda

Stanford University

Enrique Seira

Instituto Tecnológico Autónomo de México (ITAM)

Siddharth Sharma

The World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: June 2008

Abstract

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

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

Simeon Djankov

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

Pedro C. Miranda

Stanford University

Stanford, CA 94305
United States

Enrique Seira

Instituto Tecnológico Autónomo de México (ITAM) ( email )

Av. Camino a Sta. Teresa 930
Col. Héroes de Padierna
Mexico City, D.F. 01000, Federal District 01080
Mexico

Siddharth Sharma (Contact Author)

The World Bank ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

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