AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Who Remains Unbanked in the United States and Why?
AEA Papers and Proceedings
(pp. 294–298)
Abstract
This paper examines factors associated with unbanked status among US households from 2015 to 2019 using FDIC survey data with fixed effects and multilevel modeling. With rising incomes reducing unbanked percentages overall, unbanked status became more concentrated among single and disabled individuals and noncitizens, less concentrated among younger households, and less strongly tied to unemployment. Digital access limitations and lower (state-level) financial literacy became more closely associated with unbanked likelihood. These findings suggest that addressing the digital divide and enhancing financial literacy could promote inclusion. However, unexplained structural factors persist, particularly regarding racial and ethnic gaps, indicating need for more granular data.Citation
Calem, Paul, Christopher Henderson, and Jenna Wang. 2026. "Who Remains Unbanked in the United States and Why?" AEA Papers and Proceedings 116: 294–298. DOI: 10.1257/pandp.20261007Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics