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.
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
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.