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Does Wealth Inhibit Criminal Behavior? Evidence from Swedish Lottery Players and Their Children

Author

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  • Cesarini, David
  • Lindqvist, Erik
  • Östling, Robert
  • Schroeder, Christofer

Abstract

There is a well-established negative gradient between economic status and crime, but its underlying causal mechanisms are not well understood. We use data on four Swedish lotteries matched to data on criminal convictions to gauge the causal effect of financial windfalls on player's own crime and their children's delinquency. We estimate a positive but statistically insignificant effect of lottery wealth on players' own conviction risk. Our estimates allow us to rule out effects one fifth as large as the cross-sectional gradient between income and crime. We also estimate a less precise null effect of parental lottery wealth on child delinquency.

Suggested Citation

  • Cesarini, David & Lindqvist, Erik & Östling, Robert & Schroeder, Christofer, 2023. "Does Wealth Inhibit Criminal Behavior? Evidence from Swedish Lottery Players and Their Children," CEPR Discussion Papers 18649, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:18649
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    File URL: https://cepr.org/publications/DP18649
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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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