Asset Building in Rural Communities: The Experience of Individual Development Accounts

Rural Sociological Society. 104 Gentry Hall, University of Missouri, Columbia, MO 65211-7040. Tel: 573-882-9065; Fax: 573-882-1473; e-mail: [email protected]; Web site: http://www.ruralsociology.org

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22

Individual Characteristics; Low Income; Ownership; Peer Groups; Rural Areas; Least Squares Statistics; Rural Sociology; Program Descriptions; Economic Development; Rural Population; Public Policy; Policy Analysis; Economic Opportunities; Program Effectiveness; Program Evaluation; Predictor Variables; Rural Economics; Theories

0036-0112

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. (Contains 4 tables.)

As Provided

47

2008

EJ806505