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2022 Annual Conference

May 19–21, 2022

Sheraton Sand Key, Clearwater Beach, FL, US

Proposal authors can use this tool to see where they have been placed in the program agenda for an Oral or Poster Session.

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Confirm your place in the schedule by going to the ACCI Presenter Confirm Google Sheet and marking your session with the name and email address of the author who will be attending and presenting. Each presentation must have a separate paid registraint. Contact the ACCI Office immedicately by email at admin@consumerinterests.org to report a conflict or if you have questions. Please be sure to reference the session title(s), date(s), and time(s) if you contact us.

WITHDRAWN The Effect of Job Loss on Bank Account Ownership

Thursday, May 19, 2022 at 5:15 PM–6:45 PM EDT
Room 2
Key Words

Job loss, unemployment, unbanked, bank account ownership, Current Population Survey

Short Description

We estimate the effect of job loss on households’ bank account ownership using novel data – the FDIC Surveys of Household Use of Banking and Financial Services (BFS) administered biennially in June between 2011 and 2019, linked to information on the dynamics of respondents’ labor force participation in surrounding months constructed from the Basic Monthly Current Population Survey (CPS). We leverage differences in the timing of unemployment spells across respondents to plausibly identify the effect of job loss. Our results indicate the effects of job loss are quite large in magnitude. For example, households that experienced a job loss in the months leading up to the June BFS are about 18 percentage points more likely to be “unbanked” than households that lost a job in the subsequent year. This effect is roughly three-quarters of the sample mean unbanked rate among the lower-income renter households that we study. We find that job loss also leads to increased use of other transaction products and services that might substitute for a bank account, including prepaid cards, check cashing, and money orders.

Submitter

Ryan Goodstein, Federal Deposit Insurance Corporation

Authors

Mark Kutzbach, Federal Deposit Insurance Corporation
Ryan Goodstein, Federal Deposit Insurance Corporation
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