Brief Can the Poor Accumulate Assets?
Signe-Mary McKernan, Caroline Ratcliffe, Trina Williams Shanks
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Can the poor accumulate assets? Longitudinal data from the Panel Study of Income Dynamics and programs targeted at helping families accumulate assets provide empirical evidence that they can. Following families over a 13-year period reveals that, even among those poor more than half the time, over 40 percent increased their net worth. And following low-income, asset-poor families over time revealed that 12 years later 44 percent saved enough to escape asset poverty. This shows that across the life course a substantial proportion of poor and low-income families do manage to accumulate assets.
Research Areas Wealth and financial well-being Social safety net
Tags Asset and debts Welfare and safety net programs Opportunity and ownership
Policy Centers Center on Labor, Human Services, and Population