Big bad banks? The winners and losers from bank deregulation in the United States

T.H.L. Beck, R. Levine, A. Levkov

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We assess the impact of bank deregulation on the distribution of income in the United States. From the 1970s through the 1990s, most states removed restrictions on intrastate branching, which intensified bank competition and improved bank performance. Exploiting the cross-state, cross-time variation in the timing of branch deregulation, we find that deregulation materially tightened the distribution of income by boosting incomes in the lower part of the income distribution while having little impact on incomes above the median. Bank deregulation tightened the distribution of income by increasing the relative wage rates and working hours of unskilled workers.
Original languageEnglish
Pages (from-to)1637-1667
JournalJournal of Finance
Volume65
Issue number5
Publication statusPublished - 2010

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Deregulation
Distribution of income
Income
Time variation
Relative wages
Bank performance
Wage rate
Income distribution
Median
Workers
Bank competition
Working hours
Boosting

Cite this

Beck, T. H. L., Levine, R., & Levkov, A. (2010). Big bad banks? The winners and losers from bank deregulation in the United States. Journal of Finance, 65(5), 1637-1667.
Beck, T.H.L. ; Levine, R. ; Levkov, A. / Big bad banks? The winners and losers from bank deregulation in the United States. In: Journal of Finance. 2010 ; Vol. 65, No. 5. pp. 1637-1667.
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Beck, THL, Levine, R & Levkov, A 2010, 'Big bad banks? The winners and losers from bank deregulation in the United States', Journal of Finance, vol. 65, no. 5, pp. 1637-1667.

Big bad banks? The winners and losers from bank deregulation in the United States. / Beck, T.H.L.; Levine, R.; Levkov, A.

In: Journal of Finance, Vol. 65, No. 5, 2010, p. 1637-1667.

Research output: Contribution to journalArticleScientificpeer-review

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