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Money and Mental Wellbeing: A Longitudinal Study of Medium-Sized Lottery Wins

  • Gardner, Jonathan

    ()

    (Watson Wyatt LLP)

  • Oswald, Andrew J.

    ()

    (University of Warwick)

One of the famous questions in social science is whether money makes people happy. We offer new evidence by using longitudinal data on a random sample of Britons who receive medium-sized lottery wins of between £1000 and £120,000 (that is, up to approximately U.S. $200,000). When compared to two control groups – one with no wins and the other with small wins – these individuals go on eventually to exhibit significantly better psychological health. Two years after a lottery win, the average measured improvement in mental wellbeing is 1.4 GHQ points.

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File URL: http://ftp.iza.org/dp2233.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2233.

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Length: 28 pages
Date of creation: Jul 2006
Date of revision:
Publication status: published in: Journal of Health Economics, 2007, 26 (1), 49-60
Handle: RePEc:iza:izadps:dp2233
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