Premium
Asset Building in Rural Communities: The Experience of Individual Development Accounts *
Author(s) -
GrinsteinWeiss Michal,
Charles Pajarita,
Curley Jami
Publication year - 2007
Publication title -
rural sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.083
H-Index - 65
eISSN - 1549-0831
pISSN - 0036-0112
DOI - 10.1526/003601107781147383
Subject(s) - asset (computer security) , rural area , ordinary least squares , peer group , economics , actuarial science , economic growth , business , demographic economics , psychology , social psychology , econometrics , political science , law , computer security , computer science
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.