Labor supply effects of winning a lottery

Matteo Picchio, Sigrid Suetens, Jan van Ours

Research output: Contribution to journalArticleScientificpeer-review

15 Citations (Scopus)

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 languageEnglish
Pages (from-to)1700-1729
JournalThe Economic Journal
Volume128
Issue number611
DOIs
Publication statusPublished - Jun 2018

Keywords

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

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