Financial Inclusion Across the United States

37 Pages Posted: 6 Dec 2021 Last revised: 25 Apr 2022

See all articles by Motohiro Yogo

Motohiro Yogo

Princeton University - Department of Economics; National Bureau of Economic Research

Andrew Whitten

U.S. Department of the Treasury - Office of Tax Analysis (OTA)

Natalie Cox

Princeton University - Department of Economics

Date Written: April 22, 2022

Abstract

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

Yogo, Motohiro and Whitten, Andrew and Cox, Natalie, Financial Inclusion Across the United States (April 22, 2022). Available at SSRN: https://ssrn.com/abstract=3934498 or http://dx.doi.org/10.2139/ssrn.3934498

Motohiro Yogo (Contact Author)

Princeton University - Department of Economics ( email )

Julis Romo Rabinowitz Building
Princeton, NJ 08544
United States

HOME PAGE: http://sites.google.com/site/motohiroyogo/

National Bureau of Economic Research

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Andrew Whitten

U.S. Department of the Treasury - Office of Tax Analysis (OTA) ( email )

1500 Pennsylvania Ave., N.W.
Washington, DC 20220
United States

HOME PAGE: http://andrewwhitten.com

Natalie Cox

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

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