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Racial Differences In Performance In A Matched Savings Program, Michal Grinstein-Weiss, Michael Sherraden

Center for Social Development Research

This study examines the saving performance of low income African Americans and Caucasian participants in an Individual Development Accounts (IDA) program. IDAs are matched saving for home ownership, education, and small business capitalization. Using data from the American Dream Demonstration (N = 2,364), this study compares the savings performance of Black and White participants in IDAs. The results indicate that low-income African Americans on average save successfully in IDAs, though in smaller amounts than Caucasians. Results of separateregressions for Blacks and Whites indicate that mostly individual characteristics are associatedwith saving performance among Caucasians. In contrast, mostly institutional characteristics areassociated with …