Publication Date
7-13-2009
Summary
This study uses the longitudinal survey data from the American Dream Demonstration (ADD) involving experimental design (treatment group=537, control group=566) to examine the effects of Individual Development Accounts (IDAs) on household wealth of low-income participants. Results of quantile regression analysis show that program participation significantly increased household financial assets, controlling for household saving taste and other demographic variables. Program participants did not reshuffle existing assets into IDAs, and IDA savings represented new household wealth. Low-wealth participants benefited more from the program than those with relatively more wealth. In addition, program participation changed participants’ saving behaviors and improved household saving taste.
Document Type
Working Paper
Category
Financial Inclusion
Subarea
Asset Building
Original Citation
Huang, J. (2009). IDAs, saving taste, and household wealth: Evidence from the American Dream Demonstration (CSD Working Paper No. 09-27). St. Louis, MO: Washington University, Center for Social Development.
Project
American Dream Policy Demonstration (ADD)
Keywords
individual development account, IDA, savings, low income, household, family
Recommended Citation
Huang, J. (2009). IDAs, saving taste, and household wealth: Evidence from the American Dream Demonstration (CSD Working Paper No. 09-27). St. Louis, MO: Washington University, Center for Social Development.
DOI: https://doi.org/10.7936/K70V8C81
Notes
Subsequent publication: Huang, J. (2010). Effects of Individual Development Accounts (IDAs) on household wealth and saving taste. Research on Social Work Practice, 20(6), 582–590. doi:10.1177/1049731509347852