The effects of welfare and Individual Development Account (IDA) program rules on asset holdings

This study examines the effects of welfare, Food Stamp, and Individual Development Account rules on low-education families’ asset holding, using family-level data from the Survey of Income and Program Participation covering 1991–2003 and state-level data from various sources. Fixed-effect regression models estimate the relationship between state program rules and liquid assets, vehicle assets, and net worth. The results suggest that more lenient asset limits in means-tested programs and more generous IDA rules may have positive effects on asset holdings among low-education families.