What Can We Learn About Financial Access from U.S. Immigrants? The Role of Country of Origin Institutions and Immigrant Beliefs

Posted: 31 Dec 2008

See all articles by Una Okonkwo Osili

Una Okonkwo Osili

Indiana University - Purdue University Indianapolis (IUPUI)

Anna L. Paulson

Federal Reserve Bank of Chicago

Date Written: 2008

Abstract

Immigrants from countries with more effective institutions are more likely than other immigrants to have a relationship with a bank and to use formal financial markets more extensively. The evidence that a country's institutional environment shapes beliefs-and by extension the use of financial services-provides support for policies that focus on institutional reforms in promoting financial access. After holding wealth, education, and other factors constant, the impact of institutional quality in the country of origin affects the financial market participation of all immigrant groups except those who have lived in the United States for more than 28 years. These findings are robust to alternative measures of institutional effectiveness, to controlling for additional country of origin characteristics, and to various methods for addressing potential biases caused by immigrant self-selection.

Keywords: O16, J61, G11

Suggested Citation

Osili, Una Okonkwo and Paulson, Anna L., What Can We Learn About Financial Access from U.S. Immigrants? The Role of Country of Origin Institutions and Immigrant Beliefs (2008). The World Bank Economic Review, Vol. 22, Issue 3, pp. 431-455, 2008. Available at SSRN: https://ssrn.com/abstract=1318111 or http://dx.doi.org/lhn019

Una Okonkwo Osili (Contact Author)

Indiana University - Purdue University Indianapolis (IUPUI) ( email )

1309 E. 10th St.
Bloomington, IN 47405
United States

Anna L. Paulson

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States
312 322 2169 (Phone)

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