Do institutions really matter for saving among low-income households? A comparative approach

This study aims to examine the extent to which competing theories explain saving of low-income households in Individual Development Accounts (IDAs). Competing theories include the individual-oriented perspective, a social stratification perspective, and institutional saving theory. We use American Dream Demonstration (ADD) data collected at the Tulsa IDA program. Compared with the individual perspective and the social stratification perspective, institutional features explain a large part of the variance in saving outcomes measured by average monthly net deposit (AMND) and deposit frequency. Findings suggest that institutional structures encouraging low-income households to save may contribute to more inclusive asset-based policy.