Working Paper: CEPR ID: DP10929
Authors: Matteo Picchio; Sigrid Suetens; Jan C. van Ours
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.
Keywords: Income Effects; Labor Supply; Lottery Players; Wealth Shocks
JEL Codes: J22; J29
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Winning a lottery prize (H27) | Decrease in earnings (J31) |
| Winning a lottery prize (H27) | Employment status (J63) |
| Winning a lottery prize (H27) | Adjust work hours (J22) |
| Winning a lottery prize (H27) | Effects last for several years (C41) |