Individual Development Accounts and Post-Secondary Education: Evidence from a Randomized Experiment

24 Pages Posted: 3 Jul 2014

See all articles by Michal Grinstein-Weiss

Michal Grinstein-Weiss

University of North Carolina (UNC) at Chapel Hill; Washington University in St. Louis

Michael W. Sherraden

Washington University in St. Louis - George Warren Brown School of Social Work

William G. Gale

Brookings Institution

William Rohe

University of North Carolina (UNC) at Chapel Hill

Mark Schreiner

Washington University in St. Louis - Center for Social Development

Clinton Key

University of North Carolina (UNC) at Chapel Hill

Date Written: April 30, 2013

Abstract

This paper presents evidence from a randomized field experiment testing the impact of a 3-year matched savings program on educational outcomes 10 years later. We examine the effect of an Individual Development Account (IDA) program on educational enrollment, degree completion, and increased education level. The IDA program, which ran from 1998 to 2003 in Tulsa, Oklahoma, provided low-income households with financial education and matching funds for qualified savings withdrawals, including a 1:1 match for educational uses. We find a significant impact on education enrollment and positive, but non-significant impacts on degree completion and increase in level of education. We also examine the interaction between gender and treatment assignment and find that the IDA had a strong positive effect on increased educational attainment for males, but not for females.

Keywords: Individual Development Accounts, asset effects, educational attainment

JEL Classification: I20

Suggested Citation

Grinstein-Weiss, Michal and Sherraden, Michael W. and Gale, William G. and Rohe, William and Schreiner, Mark Joseph and Key, Clinton, Individual Development Accounts and Post-Secondary Education: Evidence from a Randomized Experiment (April 30, 2013). Available at SSRN: https://ssrn.com/abstract=2460867 or http://dx.doi.org/10.2139/ssrn.2460867

Michal Grinstein-Weiss (Contact Author)

University of North Carolina (UNC) at Chapel Hill ( email )

102 Ridge Road
Chapel Hill, NC NC 27514
United States

Washington University in St. Louis ( email )

One Brookings Drive
Campus Box 1208
Saint Louis, MO MO 63130-4899
United States

Michael W. Sherraden

Washington University in St. Louis - George Warren Brown School of Social Work ( email )

St. Louis, MO 63130
United States
+1 314 935-6691 (Phone)
+1 314 935-8511 (Fax)

William G. Gale

Brookings Institution ( email )

1775 Massachusetts Avenue, NW
Washington, DC 20036
United States
202-797-6148 (Phone)
202-797-6181 (Fax)

William Rohe

University of North Carolina (UNC) at Chapel Hill ( email )

102 Ridge Road
Chapel Hill, NC NC 27514
United States

Mark Joseph Schreiner

Washington University in St. Louis - Center for Social Development ( email )

St. Louis, MO 63130
United States
314-935-9778 (Phone)
314-935-8661 (Fax)

Clinton Key

University of North Carolina (UNC) at Chapel Hill ( email )

102 Ridge Road
Chapel Hill, NC NC 27514
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
15
Abstract Views
233
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information