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STUDY
Transaction Costs, Bargaining Power, and Savings Account Use
The transaction costs associated with opening, maintaining, and withdrawing funds may be a barrier to using formal savings accounts for low-income individuals. Couples in Western Kenya were offered the opportunity to open individual or joint bank accounts, and a subsample of accounts were randomly selected to come with a free ATM card. Results show that providing ATM cards significantly increased the use of savings accounts owned by men and joint accounts. READ MORE
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