Publication Date

7-1-2002

Summary

This paper examines the relationship between income and saving performance in Individual Development Accounts (IDAs). We first discuss theories of saving. Next, for IDA participants in the American Dream Demonstration, we look at income sources and distribution, followed by tabulations of income and savings outcomes. Following this, we discuss results from regression analyses on savings outcomes. We find that savings amount did not increase with income and that the savings rate decreased with income. Although the data do not reveal exactly what caused this, we believe that institutional factors in IDA programs played an important role.

Document Type

Working Paper

Category

Financial Inclusion

Subarea

Asset Building

Original Citation

Sherraden, M., Schreiner, M., & Beverly, S. (2002). Income, institutions, and saving performance in Individual Development Accounts (CSD Working Paper No. 02-3). St. Louis, MO: Washington University, Center for Social Development.

Project

American Dream Policy Demonstration (ADD)

Keywords

ADD, American Dream Demonstration, IDA, individual development, income, savings, savings outcomes

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