Asset building in rural communities: The experience of individual development accounts

Michal Grinstein-Weiss, Jami Curley, Pajarita Charles

Research output: Contribution to journalArticlepeer-review

19 Scopus citations

Abstract

This study examines the unique experiences of low-income rural participants in an asset building program - the Individual Development Account. Using data from the American Dream Demonstration, this study addresses three main questions: (1) What are the individual characteristics associated with saving outcomes among rural IDA participants? (2) What are the program characteristics associated with savings among rural participants? (3) What are the policy implications for supporting asset building in rural areas? To answer these questions we conduct an Ordinary Least Squares regression analysis. The results suggest that low-income rural participants have the ability and willingness to save toward the accumulation of assets in IDAs. Looking at individual characteristics, home ownership appears to be an important predictor of savings. In addition, this study suggests that program characteristics (financial education, peer group meetings, match rate, direct deposit, and monthly saving target), not merely individual characteristics, are important in explaining saving performance for this group.

Original languageEnglish
Pages (from-to)25-46
Number of pages22
JournalRural Sociology
Volume72
Issue number1
DOIs
StatePublished - 1 Mar 2007
Externally publishedYes

ASJC Scopus subject areas

  • Sociology and Political Science

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