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Financial Inclusion Across the United States

Author

Listed:
  • Yogo, Motohiro
  • Whitten, Andrew
  • Cox, Natalie

Abstract

We study retirement and bank account participation for the universe of U.S. households with a member aged 50 to 59 in the administrative tax data. ZCTA-level average income, income inequality, and racial composition predict retirement account participation for low-income households, conditional on household income and regional price parities. Income inequality also predicts bank account participation for low-income households. We estimate the causal effect of access to an employer retirement plan on participation. Recent policy proposals for universal access with automatic enrollment could increase participation by 19 percentage points in the lowest income quintile over ten years.

Suggested Citation

  • Yogo, Motohiro & Whitten, Andrew & Cox, Natalie, 2025. "Financial Inclusion Across the United States," Journal of Financial Economics, Elsevier, vol. 166(C).
    • Handle: RePEc:eee:jfinec:v:166:y:2025:i:c:s0304405x2500011x
    DOI: 10.1016/j.jfineco.2025.104003
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    More about this item

    Keywords

    Financial participation; Household finance; Inequality; Racial disparities; Tax policy;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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