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Effects of Lottery Wins on Household Labor Supply

Author

Listed:
  • Ignacio Belloc
  • José Alberto Molina
  • Jorge Velilla

Abstract

This paper analyzes the impact of lottery wins on household labor supply in the United Kingdom, using data from the British Household Panel Survey. We show that lottery wins do not have significant effects on hours of work of males, while female hours of work decrease in response to lottery wins. When we control for different lottery prize amounts, we find that large lottery wins reduce female annual hours of work by 120 h one and 2 years after the prize. The estimates are heterogeneous across age groups, levels of educational attainment, and household composition. These results suggest that shocks in unearned income may take some time to appear but have a lasting impact.

Suggested Citation

  • Ignacio Belloc & José Alberto Molina & Jorge Velilla, 2026. "Effects of Lottery Wins on Household Labor Supply," Manchester School, University of Manchester, vol. 94(1), pages 90-115, January.
    • Handle: RePEc:bla:manchs:v:94:y:2026:i:1:p:90-115
    DOI: 10.1111/manc.70008
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    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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