Financial Inclusion Across the United States
37 Pages Posted: 6 Dec 2021 Last revised: 25 Apr 2022
Date Written: April 22, 2022
We study bank and retirement account participation for the universe of U.S. households with a member aged 50 to 59 in the administrative tax data. Relative to survey data, financial participation has a steeper income gradient. In the lowest income quintile in 2019, bank and retirement account participation are 70 and 21 percent respectively. 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 an employer retirement plan on retirement account participation for low- and middle-income households.
Keywords: Financial participation, Household finance, Inequality, Racial disparities, Tax policy
JEL Classification: D14, G51
Suggested Citation: Suggested Citation