Big Bad Banks? The Impact of U.S. Branch Deregulation on Income Distribution

Policymakers and economists disagree about the impact of bank regulations on the distribution of income. Exploiting cross-state and cross-time variation, the authors test whether liberalizing restrictions on intra-state branching in the United Sta...

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Main Authors: Beck, Thorsten, Levine, Ross, Levkov, Alexey
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2007/08/8179660/big-bad-banks-impact-branch-deregulation-income-distribution
http://hdl.handle.net/10986/7283
id okr-10986-7283
recordtype oai_dc
spelling okr-10986-72832021-04-23T14:02:34Z Big Bad Banks? The Impact of U.S. Branch Deregulation on Income Distribution Beck, Thorsten Levine, Ross Levkov, Alexey ACCOUNTING ADVERSE EFFECTS AGGREGATE GROWTH ATMS AVERAGE INCOME AVERAGE WAGE BANK BRANCH BANK BRANCHES BANK CREDIT BANK LOAN BANK LOANS BANK REGULATIONS BANKING INDUSTRY BANKING SECTOR DEVELOPMENT BANKING SERVICES BANKING SYSTEMS BOND BORROWING BUSINESS CYCLES BUSINESS SCHOOL CAPITAL ACCUMULATION CAPITAL MARKET CENTRAL BANK CIVIL WAR COLLATERAL COLLATERAL REQUIREMENTS COLLEGE DEGREE COMMERCIAL BANKING COMMUNICATIONS TECHNOLOGY CONFIDENTIALITY CONTRIBUTION CREDIT AVAILABILITY CREDIT CARD CREDIT MARKET CREDIT MARKET IMPERFECTIONS CROSS-COUNTRY ANALYSES DECOMPOSITION TECHNIQUES DEMOCRATIC SOCIETIES DEMOGRAPHIC DEPENDENT VARIABLE DEREGULATION DESCRIPTIVE STATISTICS DEVELOPING ECONOMIES DIFFERENTIAL IMPACT DIRECT ACCESS DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES DISTRIBUTIONAL EFFECTS DIVIDENDS EARNINGS EARNINGS INEQUALITY EARNINGS OF WOMEN ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC REVIEW ECONOMIC STUDIES ECONOMIC THEORY ECONOMY LITERATURE EMPIRICAL EVIDENCE EMPIRICAL FINDINGS EMPIRICAL SUPPORT FAMILY INCOME FEDERAL RESERVE FEDERAL RESERVE BANK FEMALE WORKERS FINANCIAL COMPANIES FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL SYSTEMS FIXED COSTS GINI COEFFICIENT GLOBALIZATION GOVERNMENT EXPENDITURES GROWTH RATE GROWTH THEORIES HIGH COST HOLDING COMPANIES HOLDING COMPANY HUMAN CAPITAL INCENTIVE EFFECTS INCOME INCOME DATA INCOME DIFFERENCES INCOME DISTRIBUTION INCOME DISTRIBUTION DATA INCOME GROWTH INCOME INEQUALITY INCOME INEQUALITY DATA INCOME REDISTRIBUTION INCOMES INEQUALITY MEASURES INSURANCE INSURANCE PRODUCTS INTEREST PAYMENTS INTEREST RATE LABOR FORCE LABOR MARKET LAGGED GROWTH LARGE BANK LARGE BANKS LARGE FIRMS LIBERALIZATION LOCAL BANK LOCAL BANKS LORENZ CURVE LOWER INCOME MACROECONOMICS MARKET CONDITIONS MARKET IMPERFECTIONS MARKET STRUCTURE MARRIED WOMEN MEASUREMENT ERROR MERGERS MONETARY ECONOMICS MONEY MARKET MONEY MARKET MUTUAL FUNDS MONOPOLIES MONOPOLY MUTUAL FUNDS NATURAL LOGARITHM NATURAL MONOPOLY NEGATIVE EFFECT NEGATIVE IMPACT PER CAPITA GROWTH PER CAPITA INCOME PERSONAL INCOME POLICY CHANGE POLICY RESEARCH POLITICAL ECONOMY POLITICAL INSTITUTIONS POLITICAL POWER POSITIVE EFFECT POSITIVE IMPACT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT MARKET REDISTRIBUTION POLICIES REGIONAL DUMMIES REGRESSION RESULTS REGULATORY RESTRICTIONS RELATIVE INCOME RELATIVE INCOMES RELATIVE WAGES RENTS RESEARCH ASSISTANCE SALARY SELF-EMPLOYMENT SIGNIFICANT EFFECT SIGNIFICANT RELATIONSHIP SKILL PREMIUM SKILLED WORKERS SMALL BUSINESS SMALL BUSINESSES SOCIAL COSTS SOURCES OF INCOME STATE BANK STATE UNIVERSITY TAX TAXATION TERMINATION UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED WORKERS VALUE ADDED VOLATILITY WAGE WAGE RATES WAGES WORLD ECONOMIES Policymakers and economists disagree about the impact of bank regulations on the distribution of income. Exploiting cross-state and cross-time variation, the authors test whether liberalizing restrictions on intra-state branching in the United States intensified, ameliorated, or had no effect on income distribution. The analysis finds that branch deregulation lowered income inequality by affecting labor market conditions, not by boosting the business income of the poor, nor by enhancing educational attainment. Reductions in the earnings gap between men and women and between skilled and unskilled workers account for the bulk of the explained drop in income inequality. 2012-06-06T17:57:01Z 2012-06-06T17:57:01Z 2007-08 http://documents.worldbank.org/curated/en/2007/08/8179660/big-bad-banks-impact-branch-deregulation-income-distribution http://hdl.handle.net/10986/7283 English Policy Research Working Paper; No. 4330 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTING
ADVERSE EFFECTS
AGGREGATE GROWTH
ATMS
AVERAGE INCOME
AVERAGE WAGE
BANK BRANCH
BANK BRANCHES
BANK CREDIT
BANK LOAN
BANK LOANS
BANK REGULATIONS
BANKING INDUSTRY
BANKING SECTOR DEVELOPMENT
BANKING SERVICES
BANKING SYSTEMS
BOND
BORROWING
BUSINESS CYCLES
BUSINESS SCHOOL
CAPITAL ACCUMULATION
CAPITAL MARKET
CENTRAL BANK
CIVIL WAR
COLLATERAL
COLLATERAL REQUIREMENTS
COLLEGE DEGREE
COMMERCIAL BANKING
COMMUNICATIONS TECHNOLOGY
CONFIDENTIALITY
CONTRIBUTION
CREDIT AVAILABILITY
CREDIT CARD
CREDIT MARKET
CREDIT MARKET IMPERFECTIONS
CROSS-COUNTRY ANALYSES
DECOMPOSITION TECHNIQUES
DEMOCRATIC SOCIETIES
DEMOGRAPHIC
DEPENDENT VARIABLE
DEREGULATION
DESCRIPTIVE STATISTICS
DEVELOPING ECONOMIES
DIFFERENTIAL IMPACT
DIRECT ACCESS
DISTRIBUTION OF INCOME
DISTRIBUTIONAL CHANGES
DISTRIBUTIONAL EFFECTS
DIVIDENDS
EARNINGS
EARNINGS INEQUALITY
EARNINGS OF WOMEN
ECONOMIC GROWTH
ECONOMIC HISTORY
ECONOMIC REVIEW
ECONOMIC STUDIES
ECONOMIC THEORY
ECONOMY LITERATURE
EMPIRICAL EVIDENCE
EMPIRICAL FINDINGS
EMPIRICAL SUPPORT
FAMILY INCOME
FEDERAL RESERVE
FEDERAL RESERVE BANK
FEMALE WORKERS
FINANCIAL COMPANIES
FINANCIAL DEVELOPMENT
FINANCIAL INSTITUTIONS
FINANCIAL LIBERALIZATION
FINANCIAL MARKET
FINANCIAL REFORMS
FINANCIAL SECTOR
FINANCIAL SECTOR DEVELOPMENT
FINANCIAL SERVICES
FINANCIAL SYSTEMS
FIXED COSTS
GINI COEFFICIENT
GLOBALIZATION
GOVERNMENT EXPENDITURES
GROWTH RATE
GROWTH THEORIES
HIGH COST
HOLDING COMPANIES
HOLDING COMPANY
HUMAN CAPITAL
INCENTIVE EFFECTS
INCOME
INCOME DATA
INCOME DIFFERENCES
INCOME DISTRIBUTION
INCOME DISTRIBUTION DATA
INCOME GROWTH
INCOME INEQUALITY
INCOME INEQUALITY DATA
INCOME REDISTRIBUTION
INCOMES
INEQUALITY MEASURES
INSURANCE
INSURANCE PRODUCTS
INTEREST PAYMENTS
INTEREST RATE
LABOR FORCE
LABOR MARKET
LAGGED GROWTH
LARGE BANK
LARGE BANKS
LARGE FIRMS
LIBERALIZATION
LOCAL BANK
LOCAL BANKS
LORENZ CURVE
LOWER INCOME
MACROECONOMICS
MARKET CONDITIONS
MARKET IMPERFECTIONS
MARKET STRUCTURE
MARRIED WOMEN
MEASUREMENT ERROR
MERGERS
MONETARY ECONOMICS
MONEY MARKET
MONEY MARKET MUTUAL FUNDS
MONOPOLIES
MONOPOLY
MUTUAL FUNDS
NATURAL LOGARITHM
NATURAL MONOPOLY
NEGATIVE EFFECT
NEGATIVE IMPACT
PER CAPITA GROWTH
PER CAPITA INCOME
PERSONAL INCOME
POLICY CHANGE
POLICY RESEARCH
POLITICAL ECONOMY
POLITICAL INSTITUTIONS
POLITICAL POWER
POSITIVE EFFECT
POSITIVE IMPACT
PRIVATE SECTOR
PRIVATE SECTOR DEVELOPMENT
PRODUCT MARKET
REDISTRIBUTION POLICIES
REGIONAL DUMMIES
REGRESSION RESULTS
REGULATORY RESTRICTIONS
RELATIVE INCOME
RELATIVE INCOMES
RELATIVE WAGES
RENTS
RESEARCH ASSISTANCE
SALARY
SELF-EMPLOYMENT
SIGNIFICANT EFFECT
SIGNIFICANT RELATIONSHIP
SKILL PREMIUM
SKILLED WORKERS
SMALL BUSINESS
SMALL BUSINESSES
SOCIAL COSTS
SOURCES OF INCOME
STATE BANK
STATE UNIVERSITY
TAX
TAXATION
TERMINATION
UNEMPLOYMENT
UNEMPLOYMENT RATE
UNSKILLED WORKERS
VALUE ADDED
VOLATILITY
WAGE
WAGE RATES
WAGES
WORLD ECONOMIES
spellingShingle ACCOUNTING
ADVERSE EFFECTS
AGGREGATE GROWTH
ATMS
AVERAGE INCOME
AVERAGE WAGE
BANK BRANCH
BANK BRANCHES
BANK CREDIT
BANK LOAN
BANK LOANS
BANK REGULATIONS
BANKING INDUSTRY
BANKING SECTOR DEVELOPMENT
BANKING SERVICES
BANKING SYSTEMS
BOND
BORROWING
BUSINESS CYCLES
BUSINESS SCHOOL
CAPITAL ACCUMULATION
CAPITAL MARKET
CENTRAL BANK
CIVIL WAR
COLLATERAL
COLLATERAL REQUIREMENTS
COLLEGE DEGREE
COMMERCIAL BANKING
COMMUNICATIONS TECHNOLOGY
CONFIDENTIALITY
CONTRIBUTION
CREDIT AVAILABILITY
CREDIT CARD
CREDIT MARKET
CREDIT MARKET IMPERFECTIONS
CROSS-COUNTRY ANALYSES
DECOMPOSITION TECHNIQUES
DEMOCRATIC SOCIETIES
DEMOGRAPHIC
DEPENDENT VARIABLE
DEREGULATION
DESCRIPTIVE STATISTICS
DEVELOPING ECONOMIES
DIFFERENTIAL IMPACT
DIRECT ACCESS
DISTRIBUTION OF INCOME
DISTRIBUTIONAL CHANGES
DISTRIBUTIONAL EFFECTS
DIVIDENDS
EARNINGS
EARNINGS INEQUALITY
EARNINGS OF WOMEN
ECONOMIC GROWTH
ECONOMIC HISTORY
ECONOMIC REVIEW
ECONOMIC STUDIES
ECONOMIC THEORY
ECONOMY LITERATURE
EMPIRICAL EVIDENCE
EMPIRICAL FINDINGS
EMPIRICAL SUPPORT
FAMILY INCOME
FEDERAL RESERVE
FEDERAL RESERVE BANK
FEMALE WORKERS
FINANCIAL COMPANIES
FINANCIAL DEVELOPMENT
FINANCIAL INSTITUTIONS
FINANCIAL LIBERALIZATION
FINANCIAL MARKET
FINANCIAL REFORMS
FINANCIAL SECTOR
FINANCIAL SECTOR DEVELOPMENT
FINANCIAL SERVICES
FINANCIAL SYSTEMS
FIXED COSTS
GINI COEFFICIENT
GLOBALIZATION
GOVERNMENT EXPENDITURES
GROWTH RATE
GROWTH THEORIES
HIGH COST
HOLDING COMPANIES
HOLDING COMPANY
HUMAN CAPITAL
INCENTIVE EFFECTS
INCOME
INCOME DATA
INCOME DIFFERENCES
INCOME DISTRIBUTION
INCOME DISTRIBUTION DATA
INCOME GROWTH
INCOME INEQUALITY
INCOME INEQUALITY DATA
INCOME REDISTRIBUTION
INCOMES
INEQUALITY MEASURES
INSURANCE
INSURANCE PRODUCTS
INTEREST PAYMENTS
INTEREST RATE
LABOR FORCE
LABOR MARKET
LAGGED GROWTH
LARGE BANK
LARGE BANKS
LARGE FIRMS
LIBERALIZATION
LOCAL BANK
LOCAL BANKS
LORENZ CURVE
LOWER INCOME
MACROECONOMICS
MARKET CONDITIONS
MARKET IMPERFECTIONS
MARKET STRUCTURE
MARRIED WOMEN
MEASUREMENT ERROR
MERGERS
MONETARY ECONOMICS
MONEY MARKET
MONEY MARKET MUTUAL FUNDS
MONOPOLIES
MONOPOLY
MUTUAL FUNDS
NATURAL LOGARITHM
NATURAL MONOPOLY
NEGATIVE EFFECT
NEGATIVE IMPACT
PER CAPITA GROWTH
PER CAPITA INCOME
PERSONAL INCOME
POLICY CHANGE
POLICY RESEARCH
POLITICAL ECONOMY
POLITICAL INSTITUTIONS
POLITICAL POWER
POSITIVE EFFECT
POSITIVE IMPACT
PRIVATE SECTOR
PRIVATE SECTOR DEVELOPMENT
PRODUCT MARKET
REDISTRIBUTION POLICIES
REGIONAL DUMMIES
REGRESSION RESULTS
REGULATORY RESTRICTIONS
RELATIVE INCOME
RELATIVE INCOMES
RELATIVE WAGES
RENTS
RESEARCH ASSISTANCE
SALARY
SELF-EMPLOYMENT
SIGNIFICANT EFFECT
SIGNIFICANT RELATIONSHIP
SKILL PREMIUM
SKILLED WORKERS
SMALL BUSINESS
SMALL BUSINESSES
SOCIAL COSTS
SOURCES OF INCOME
STATE BANK
STATE UNIVERSITY
TAX
TAXATION
TERMINATION
UNEMPLOYMENT
UNEMPLOYMENT RATE
UNSKILLED WORKERS
VALUE ADDED
VOLATILITY
WAGE
WAGE RATES
WAGES
WORLD ECONOMIES
Beck, Thorsten
Levine, Ross
Levkov, Alexey
Big Bad Banks? The Impact of U.S. Branch Deregulation on Income Distribution
relation Policy Research Working Paper; No. 4330
description Policymakers and economists disagree about the impact of bank regulations on the distribution of income. Exploiting cross-state and cross-time variation, the authors test whether liberalizing restrictions on intra-state branching in the United States intensified, ameliorated, or had no effect on income distribution. The analysis finds that branch deregulation lowered income inequality by affecting labor market conditions, not by boosting the business income of the poor, nor by enhancing educational attainment. Reductions in the earnings gap between men and women and between skilled and unskilled workers account for the bulk of the explained drop in income inequality.
format Publications & Research :: Policy Research Working Paper
author Beck, Thorsten
Levine, Ross
Levkov, Alexey
author_facet Beck, Thorsten
Levine, Ross
Levkov, Alexey
author_sort Beck, Thorsten
title Big Bad Banks? The Impact of U.S. Branch Deregulation on Income Distribution
title_short Big Bad Banks? The Impact of U.S. Branch Deregulation on Income Distribution
title_full Big Bad Banks? The Impact of U.S. Branch Deregulation on Income Distribution
title_fullStr Big Bad Banks? The Impact of U.S. Branch Deregulation on Income Distribution
title_full_unstemmed Big Bad Banks? The Impact of U.S. Branch Deregulation on Income Distribution
title_sort big bad banks? the impact of u.s. branch deregulation on income distribution
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/08/8179660/big-bad-banks-impact-branch-deregulation-income-distribution
http://hdl.handle.net/10986/7283
_version_ 1764402278634094592