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Labor Supply Effects of Winning a Lottery

Author

Listed:
  • Picchio, Matteo

    (Marche Polytechnic University)

  • Suetens, Sigrid

    (Tilburg University)

  • van Ours, Jan C.

    (Erasmus University Rotterdam)

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.

Suggested Citation

  • Picchio, Matteo & Suetens, Sigrid & van Ours, Jan C., 2015. "Labor Supply Effects of Winning a Lottery," IZA Discussion Papers 9472, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9472
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    References listed on IDEAS

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    More about this item

    Keywords

    labor supply; wealth shocks; lottery players; income effects;
    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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