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Participation and Expenditure of Rural-Urban Migrants in the Illegal Lottery in China

  • Zhiming Cheng
  • Russell Smyth
  • Gong Sun

Using a unique dataset from the Pearl River Delta in China we examine the factors associated with rural-urban migrants’ participation in, and expenditure on, illegal gambling. We find that similar demographic and lifestyle characteristics are associated with participation in, and expenditure on, the illegal lottery. The characteristics which have the largest marginal effects on participation and expenditure are gender, whether one also participates in the legal lottery and playing mah-jong and other card games. The amount of a normal sized bet placed by males is 30 per cent higher than that placed by females, based on the mean value of a normal bet. The corresponding figures for those who participate in the official lottery and those who play mah-jong or card games respectively are 48 per cent and 39 per cent higher. Policy implications and recommendations stemming from the major findings are discussed.

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File URL: http://www.buseco.monash.edu.au/eco/research/papers/2013/index.html
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Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 24-13.

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Length: 29 pages
Date of creation: Jul 2013
Date of revision:
Handle: RePEc:mos:moswps:2013-24
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  1. Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
  2. Axel Dreher & Friedrich Schneider, 2006. "Corruption and the Shadow Economy: An Empirical Analysis," CREMA Working Paper Series 2006-01, Center for Research in Economics, Management and the Arts (CREMA).
  3. Schneider, Friedrich, 2005. "Shadow economies around the world: what do we really know?," European Journal of Political Economy, Elsevier, vol. 21(3), pages 598-642, September.
  4. Brad Humphreys & Yang Seung Lee & Brian P. Soebbing, 2011. "Modeling Consumers' Participation in Gambling Markets and Frequency of Gambling," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 5(1), pages 1-22, March.
  5. Harriet A. Stranahan & Mary O. Borg, 1998. "Separating the Decisions of Lottery Expenditures and Participation: a Truncated Tobit Approach," Public Finance Review, , vol. 26(2), pages 99-117, March.
  6. Nielsen, Ingrid & Smyth, Russell, 2008. "Who wants safer cities? Perceptions of public safety and attitudes to migrants among China's urban population," International Review of Law and Economics, Elsevier, vol. 28(1), pages 46-55, March.
  7. Kam Wing Chan, 2010. "The Global Financial Crisis and Migrant Workers in China: 'There is No Future as a Labourer; Returning to the Village has No Meaning'," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 659-677, 09.
  8. Friedrich Schneider & Dominik Enste, 1999. "Shadow Economies Around the World - Size, Causes, and Consequences," CESifo Working Paper Series 196, CESifo Group Munich.
  9. Russell Smyth & Ingrid Nielsen & Qingguo Zhai, 2009. "Subjective Well-Being Of China'S Off-Farm Migrants," Development Research Unit Working Paper Series 02-09, Monash University, Department of Economics.
  10. Charles T. Clotfelter & Philip J. Cook, 1987. "Implicit Taxation in Lottery Finance," NBER Working Papers 2246, National Bureau of Economic Research, Inc.
  11. Scott, Frank & Garen, John, 1994. "Probability of purchase, amount of purchase, and the demographic incidence of the lottery tax," Journal of Public Economics, Elsevier, vol. 54(1), pages 121-143, May.
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  13. Cheng, Zhiming & Smyth, Russell, 2015. "Sex and happiness," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 26-32.
  14. Clotfelter, Charles T & Cook, Philip J, 1990. "On the Economics of State Lotteries," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 105-19, Fall.
  15. Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May.
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