Additional Authors

Sherraden, Michael

Publication Date

7-1-2004

Summary

This study examines the saving performance of low income African Americans and Caucasian participants in an Individual Development Accounts (IDA) program. IDAs are matched saving for home ownership, education, and small business capitalization. Using data from the American Dream Demonstration (N = 2,364), this study compares the savings performance of Black and White participants in IDAs. The results indicate that low-income African Americans on average save successfully in IDAs, though in smaller amounts than Caucasians. Results of separateregressions for Blacks and Whites indicate that mostly individual characteristics are associatedwith saving performance among Caucasians. In contrast, mostly institutional characteristics areassociated with saving performance among African Americans. Implications for policy and programs are suggested.

Document Type

Working Paper

Category

Financial Inclusion

Subarea

Asset Building

Original Citation

Grinstein-Weiss, M., & Sherraden, M. (2004). Racial differences in performance in a matched savings program (CSD Working Paper No. 04-04). St. Louis, MO: Washington University, Center for Social Development.

DOI:

https://doi.org/10.7936/K7HX1C78

Project

American Dream Policy Demonstration (ADD)

Keywords

ADD, American Dream Demonstration, IDA, individual development account, race, matched saving

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