Levine, RossBeck, ThorstenLevkov, Alexey2012-06-062012-06-062007-08https://hdl.handle.net/10986/7283Policymakers 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.CC BY 3.0 IGOACCOUNTINGADVERSE EFFECTSAGGREGATE GROWTHATMSAVERAGE INCOMEAVERAGE WAGEBANK BRANCHBANK BRANCHESBANK CREDITBANK LOANBANK LOANSBANK REGULATIONSBANKING INDUSTRYBANKING SECTOR DEVELOPMENTBANKING SERVICESBANKING SYSTEMSBONDBORROWINGBUSINESS CYCLESBUSINESS SCHOOLCAPITAL ACCUMULATIONCAPITAL MARKETCENTRAL BANKCIVIL WARCOLLATERALCOLLATERAL REQUIREMENTSCOLLEGE DEGREECOMMERCIAL BANKINGCOMMUNICATIONS TECHNOLOGYCONFIDENTIALITYCONTRIBUTIONCREDIT AVAILABILITYCREDIT CARDCREDIT MARKETCREDIT MARKET IMPERFECTIONSCROSS-COUNTRY ANALYSESDECOMPOSITION TECHNIQUESDEMOCRATIC SOCIETIESDEMOGRAPHICDEPENDENT VARIABLEDEREGULATIONDESCRIPTIVE STATISTICSDEVELOPING ECONOMIESDIFFERENTIAL IMPACTDIRECT ACCESSDISTRIBUTION OF INCOMEDISTRIBUTIONAL CHANGESDISTRIBUTIONAL EFFECTSDIVIDENDSEARNINGSEARNINGS INEQUALITYEARNINGS OF WOMENECONOMIC GROWTHECONOMIC HISTORYECONOMIC REVIEWECONOMIC STUDIESECONOMIC THEORYECONOMY LITERATUREEMPIRICAL EVIDENCEEMPIRICAL FINDINGSEMPIRICAL SUPPORTFAMILY INCOMEFEDERAL RESERVEFEDERAL RESERVE BANKFEMALE WORKERSFINANCIAL COMPANIESFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONSFINANCIAL LIBERALIZATIONFINANCIAL MARKETFINANCIAL REFORMSFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SERVICESFINANCIAL SYSTEMSFIXED COSTSGINI COEFFICIENTGLOBALIZATIONGOVERNMENT EXPENDITURESGROWTH RATEGROWTH THEORIESHIGH COSTHOLDING COMPANIESHOLDING COMPANYHUMAN CAPITALINCENTIVE EFFECTSINCOMEINCOME DATAINCOME DIFFERENCESINCOME DISTRIBUTIONINCOME DISTRIBUTION DATAINCOME GROWTHINCOME INEQUALITYINCOME INEQUALITY DATAINCOME REDISTRIBUTIONINCOMESINEQUALITY MEASURESINSURANCEINSURANCE PRODUCTSINTEREST PAYMENTSINTEREST RATELABOR FORCELABOR MARKETLAGGED GROWTHLARGE BANKLARGE BANKSLARGE FIRMSLIBERALIZATIONLOCAL BANKLOCAL BANKSLORENZ CURVELOWER INCOMEMACROECONOMICSMARKET CONDITIONSMARKET IMPERFECTIONSMARKET STRUCTUREMARRIED WOMENMEASUREMENT ERRORMERGERSMONETARY ECONOMICSMONEY MARKETMONEY MARKET MUTUAL FUNDSMONOPOLIESMONOPOLYMUTUAL FUNDSNATURAL LOGARITHMNATURAL MONOPOLYNEGATIVE EFFECTNEGATIVE IMPACTPER CAPITA GROWTHPER CAPITA INCOMEPERSONAL INCOMEPOLICY CHANGEPOLICY RESEARCHPOLITICAL ECONOMYPOLITICAL INSTITUTIONSPOLITICAL POWERPOSITIVE EFFECTPOSITIVE IMPACTPRIVATE SECTORPRIVATE SECTOR DEVELOPMENTPRODUCT MARKETREDISTRIBUTION POLICIESREGIONAL DUMMIESREGRESSION RESULTSREGULATORY RESTRICTIONSRELATIVE INCOMERELATIVE INCOMESRELATIVE WAGESRENTSRESEARCH ASSISTANCESALARYSELF-EMPLOYMENTSIGNIFICANT EFFECTSIGNIFICANT RELATIONSHIPSKILL PREMIUMSKILLED WORKERSSMALL BUSINESSSMALL BUSINESSESSOCIAL COSTSSOURCES OF INCOMESTATE BANKSTATE UNIVERSITYTAXTAXATIONTERMINATIONUNEMPLOYMENTUNEMPLOYMENT RATEUNSKILLED WORKERSVALUE ADDEDVOLATILITYWAGEWAGE RATESWAGESWORLD ECONOMIESWorld Bank10.1596/1813-9450-4330