Drop-out from individual development accounts

Prediction and prevention

Authors

  • Mark Schreiner Center for Social Development, Washington University
  • Michael Sherraden Center for Social Development, Washington University

DOI:

https://doi.org/10.61190/fsr.v14i1.4812

Abstract

Individual Development Accounts (IDAs) provide matches for savings by the poor used to build assets. But IDAs cannot help if the participants drop out. What predicts drop-out? For IDAs in the American Dream Demonstration, drop-out is less likely if participants already own some asstes. In contrast, income and welfare receipt are not linked with drop-out. Drop-out is strongly associated with aspects of IDA design such as match rates, time caps, and the use of automatic transfer. Becuase drop-out can be predicted, IDA programs can keep costs down while targeting preventative assistance to the most at-risk enrollees.

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Published

2005-03-31

Issue

Vol. 14 No. 1 (2005): FSR Spring 2005

Section

New Original Submission

License

Copyright (c) 2005 Academy of Financial Services

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How to Cite

Drop-out from individual development accounts: Prediction and prevention. (2005). Financial Services Review, 14(1), 37-54. https://doi.org/10.61190/fsr.v14i1.4812