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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

This paper investigates how winning a substantial lottery prize affects labor supply. Analyzing data from Dutch State Lottery winners, we find that earnings are affected but not employment. Lottery prize winners reduce their hours of work but they are not very likely to withdraw from the labor force. We also find that the effects of lottery prizes last for several years and materialize predominantly among young single individuals without children.
(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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    4. David Cesarini & Erik Lindqvist & Matthew J. Notowidigdo & Robert Östling, 2017. "The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries," American Economic Review, American Economic Association, vol. 107(12), pages 3917-3946, December.
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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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