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Inequality and Gambling

Author

Listed:
  • Ferri, Giovanni

  • Lagravinese, Raffaele

  • Resce, Giuliano

Abstract

This study investigates the causal link between inequality and gambling on a distinct dataset that encompasses administrative records of gambling turnover by game type in Italian municipalities. Employing shift–share instruments, we find a substantial impact of inequality on gambling turnover. Moreover, we show that such impact is additional and larger than the impact of poverty and is biggest in less well-off Southern municipalities, especially concerning turnover generated from games closely associated with gambling-related issues. Given the documented regressive nature of gambling taxation, our results substantiate the concept of a hysteresis loop between inequality and gambling.

Suggested Citation

  • Ferri, Giovanni & Lagravinese, Raffaele & Resce, Giuliano, 2024. "Inequality and Gambling," Economics & Statistics Discussion Papers esdp24095, University of Molise, Department of Economics.
    • Handle: RePEc:mol:ecsdps:esdp24095
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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