Welfare recipiency and savings outcomes in individual development accounts

Min Zhan, Michael Sherraden, Mark Schreiner

Research output: Contribution to journalArticlepeer-review


The authors examined how welfare recipiency is associated with savings outcomes in individual development accounts (IDAs), a structured savings program for low-income people. They investigated whether welfare recipients can save if they are provided with incentives. Data for this study are from the American Dream Demonstration (ADD), the first nationwide demonstration of IDAs. A Heckman two- step regression analysis suggests that, after controlling for a variety of program and participant characteristics, welfare recipiency, either before or at the time of enrollment in IDAs, is not correlated with program exits or savings outcomes. The findings suggest that welfare recipiency does not seem to affect savings performance in IDAs.

Original languageEnglish (US)
Pages (from-to)165-174
Number of pages10
JournalSocial Work Research
Issue number3
StatePublished - Sep 2004


  • Individual development accounts (IDAs)
  • Savings
  • Welfare recipients
  • Welfare reform

ASJC Scopus subject areas

  • Sociology and Political Science


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