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来源类型 | Research Report |
规范类型 | 报告 |
Building Savings, Ownership, and Financial Well-Being | |
其他题名 | First- and Third-Year Assets for Independence Program Randomized Evaluation Findings in Context |
Signe-Mary McKernan; Gregory B. Mills; Caroline Ratcliffe; William J. Congdon; Mike Pergamit; Breno Braga; Kassandra Martinchek | |
发表日期 | 2020-04-09 |
出版年 | 2020 |
语种 | 英语 |
概述 | Savings and assets play an important role in economic stability and upward mobility for families with low incomes. To help households with low incomes build assets, the federal government launched the Assets for Independence (AFI) program, authorized by Congress in 1998. This program funded individual development accounts (IDAs) that matched personal savings for assets such as a first home, capital to start a |
摘要 | Savings and assets play an important role in economic stability and upward mobility for families with low incomes. To help households with low incomes build assets, the federal government launched the Assets for Independence (AFI) program, authorized by Congress in 1998. This program funded individual development accounts (IDAs) that matched personal savings for assets such as a first home, capital to start a business, or higher education and training. Federal fiscal year 2016 marked the final year of five-year grant awards under the demonstration, as no funds were appropriated for the AFI program for 2017 or 2018. The Urban Institute evaluated the AFI program at two sites, using a randomized controlled trial. This brief summarizes our findings, particularly AFI’s short-term (first-year) and medium-term (third-year) effects. We also contextualize those findings with other research on programs and policies that incentivize saving. We found that AFI increased savings in the short term, and although the program did not result in greater asset ownership among the full sample of participants, it did increase homeownership among renters and business ownership among non–business owners in the medium term, all while reducing economic hardship and use of alternative check-cashing services. These findings show that matched savings programs such as IDAs can effectively support savings and wealth-building and can help connect people with low incomes to mainstream financial services. Primary Research Questions
PurposeThe purpose of this brief is to summarize findings from our evaluation of the AFI program’s impact at two sites: Prosperity Works in Albuquerque, New Mexico, and RISE Financial Pathways in Los Angeles, California. This brief also considers these findings in the context of other studies of IDAs, including the American Dream Demonstration (ADD), and other programs and policies that promote savings and financial well-being for people and families with low incomes. Our evaluation seeks to inform the next stage of incentivized saving programs that benefit low-income earners. Key Findings and HighlightsOur findings suggest incentivized saving programs can achieve the following:
MethodsThe AFI evaluation randomly assigned study participants at two AFI project sites to a treatment group, which could receive AFI services, and a control group, which could not, allowing differences in outcomes between the two groups to be attributed to the AFI program. This evaluation was the first large-scale, multisite study to evaluate the AFI program using a randomized design. We then synthesized first-year and third-year experimental evidence from the AFI randomized evaluation and put that evidence into the broader research context. RecommendationsConsider more systematically how IDAs fit with other programs. Additional research on how asset-building programs interact with, complement, and compare with other supports for homeownership, education, and small business formation can build valuable knowledge for policymakers seeking to provide the most effective and efficient support for people with low incomes. Building rigorous evidence on newer innovations can point to new directions for experimentation and evidence building that can expand on AFI’s findings. Further research is needed to understand new saving incentives and what may be most effective. AFI reduced economic hardships, but our findings do not show why. Understanding the relationship between asset-building and emergency savings programs and their effects on financial well-being and hardship can be important for future program design. Matched savings programs remain small in terms of the total number of participants and the overall level of assistance they provide. An important direction for future research is to learn how to make matched savings programs like AFI work on a larger scale. |
主题 | Income and Wealth |
URL | https://www.urban.org/research/publication/building-savings-ownership-and-financial-well-being |
来源智库 | Urban Institute (United States) |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/480960 |
推荐引用方式 GB/T 7714 | Signe-Mary McKernan,Gregory B. Mills,Caroline Ratcliffe,et al. Building Savings, Ownership, and Financial Well-Being. 2020. |
条目包含的文件 | ||||||
文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
building-savings-own(292KB) | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 |
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