Finance and intergenerational mobility: Evidence from US banking reforms

Kampanelis, Sotiris ORCID: https://orcid.org/0000-0003-3248-9077, Chronopoulos, Dimiris and Wilson, John O.S. 2024. Finance and intergenerational mobility: Evidence from US banking reforms. Journal of Economic Behavior and Organization 226 , 106683. 10.1016/j.jebo.2024.106683

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Abstract

We investigate the impact of US banking industry deregulation on intergenerational mobility. In order to do so, we use a quasi-natural experimental research design to investigate how a change in state level bank competition (following geographic deregulation) affects the intergenerational mobility of individuals born to (poorer) families at the lower end of the income distribution. We find that individuals born to poorer families who spend their first years as adults in an area with a more competitive banking system, experience higher mobility relative to counterparts located in areas characterised by lower levels of bank competition. Increased educational opportunities and entrepreneurship are important underlying factors driving the observed increases in intergenerational mobility.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HG Finance
Publisher:	Elsevier
ISSN:	0167-2681
Date of First Compliant Deposit:	8 August 2024
Date of Acceptance:	22 July 2024
Last Modified:	08 Aug 2024 10:45
URI:	https://orca.cardiff.ac.uk/id/eprint/171132

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