Long-term effects of Individual Development Accounts on postsecondary education: Follow-up evidence from a randomized experiment
AbstractThis paper presents evidence from a randomized field experiment testing the impact of a 3-year matched savings program on educational outcomes 10 years after the start of the experiment. We examine the effect of an Individual Development Account (IDA) program on (1) educational enrollment, (2) degree completion, and (3) 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 nonsignificant) impacts on degree completion and increase in level of education. We also examine the interaction between gender and treatment assignment, finding that the IDA had a strong positive effect on increased educational attainment for men but not for women.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics of Education Review.
Volume (Year): 33 (2013)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/econedurev
Individual Development Account (IDA); Matched savings; Educational enrollment; Educational attainment; Degree completion; Randomized experiment;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
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