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Labor Supply Effects of Winning a Lottery

Author

Listed:
  • Matteo PICCHIO

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Sigrid SUETENS

    (Department of Economics, CentER, TilburgUniversity, The Nederlands)

  • Jan C. VAN OURS

    (Department of Economics, Tilburg University, The Netherlands)

Abstract

Our article investigates how winning a substantial lottery prize affects labour supply. Analysing data from Dutch State Lottery winners, we find that winning a lottery prize reduces labour earnings in the year of the winning, as well as in the years after the winning. This suggests that winning a lottery prize makes one work fewer hours. The effects are small but statistically significant. We do not find a significant effect of lottery prizes on the probability of being employed.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Matteo PICCHIO & Sigrid SUETENS & Jan C. VAN OURS, 2016. "Labor Supply Effects of Winning a Lottery," Working Papers 416, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    • Handle: RePEc:anc:wpaper:416
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    References listed on IDEAS

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    More about this item

    Keywords

    Labor supply; income effects; lottery players; wealth shocks;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other

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