Effects of individual development accounts (idas) on household wealth and saving taste

This study examines effects of individual development accounts (IDAs) on household wealth of low-income participants. Methods: This study uses longitudinal survey data from the American Dream Demonstration (ADD) involving experimental design (treatment group = 537, control group = 566). Results: Results from quantile regression analysis indicate that IDA participants had more household financial assets, controlling for household saving taste and other demographic variables. Program participants did not reshuffle existing assets into IDAs and IDA savings was 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. Conclusions: IDAs facilitate asset accumulation among low-income households. Implications for social work practice are discussed.