Abstract
Our article investigates how winning a substantial lottery prize affects labour supply. Analysing data from Dutch State Lottery winners, we find that winning a lottery prize reduces labour earnings in the year of the winning, as well as in the years after the winning. This suggests that winning a lottery prize makes one work fewer hours. The effects are small but statistically significant. We do not find a significant effect of lottery prizes on the probability of being employed.
| Original language | English |
|---|---|
| Pages (from-to) | 1700-1729 |
| Journal | Economic Journal |
| Volume | 128 |
| Issue number | 611 |
| DOIs | |
| Publication status | Published - Jun 2018 |
Keywords
- labor supply
- income effects
- wealth shocks
- lottery players