EconPapers    
Economics at your fingertips  
 

Finance and inequality in a panel of US States

Ọláyínká Oyèkọ́lá ()
Additional contact information
Ọláyínká Oyèkọ́lá: INTO University of Exeter

Authors registered in the RePEc Author Service: Olayinka Oyekola

Empirical Economics, 2021, vol. 61, issue 5, No 16, 2739-2795

Abstract: Abstract We examine the impact of sector-based reform on income inequality, concentrating on state banking deregulation in the USA, for which we employ annual balanced panel data from all 50 states and the District of Columbia, covering the period from 1970 to 2000, for our baseline analysis. The estimation strategy exploits the variation across states and years in the enactment of laws that remove restrictions on in-state bank branch geographical expansion and cross-state bank business operational expansion to compute the effects of developments in the financial sector on income inequality. We find evidence that inequality on average decreases with within-state branching reform, whereas it on average increases with between-state banking deregulation. Utilizing five different measures of inequality (top decile income share, Atkinson index, the Gini coefficient, relative mean deviation, and Theil entropy index), we determine that our finding materially depends on which measure of income inequality is being considered. We argue that this has not been stressed in the previous literature.

Keywords: Finance; Financial sector laws; Banking deregulation; Income inequality; United States (search for similar items in EconPapers)
JEL-codes: G28 O11 O16 O51 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00181-020-01976-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:61:y:2021:i:5:d:10.1007_s00181-020-01976-3

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-020-01976-3

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2024-03-31
Handle: RePEc:spr:empeco:v:61:y:2021:i:5:d:10.1007_s00181-020-01976-3