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Material resources and well-being — Evidence from an Ethiopian housing lottery

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  • Andersen, Asbjørn G.

    (Ragnar Frisch Centre for Economic Research)

  • Kotsadam, Andreas

    (Ragnar Frisch Centre for Economic Research)

  • Somville, Vincent

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

Abstract

Do better material conditions improve well-being and mental health? Or does any positive relationship merely reflect that psychological well-being promotes economic success? We supply new responses to these questions by comparing winners and losers from a large Ethiopian housing lottery in a preregistered analysis. Winners gain access to better housing, experience a substantial increase in wealth, and report higher levels of overall life satisfaction and lower levels of financial distress. However, we find no effects of winning on psychological distress, suggesting that depression and anxiety involve other causal determinants and are less sensitive to economic conditions than life satisfaction is.

Suggested Citation

  • Andersen, Asbjørn G. & Kotsadam, Andreas & Somville, Vincent, 2021. "Material resources and well-being — Evidence from an Ethiopian housing lottery," Discussion Paper Series in Economics 11/2021, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2021_011
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    Cited by:

    1. G. Andersen, Asbjørn & Franklin, Simon & Getahun, Tigabu & Kotsadam, Andreas & Somville, Vincent & Villanger, Espen, 2023. "Does wealth reduce support for redistribution? Evidence from an Ethiopian housing lottery," Journal of Public Economics, Elsevier, vol. 224(C).
    2. Zuzana Brokesova & Andrej Cupak & Anthony Lepinteur & Marian Rizov, 2021. "Wealth, Assets and Life Satisfaction: A Metadata Instrumental-Variable Approach," Working and Discussion Papers WP 4/2021, Research Department, National Bank of Slovakia.

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    Keywords

    Housing lottery; Mental health;

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    • I00 - Health, Education, and Welfare - - General - - - General

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