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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
    as

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    References listed on IDEAS

    as
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    3. Garrick Blalock & David R. Just & Daniel H. Simon, 2007. "Hitting the Jackpot or Hitting the Skids: Entertainment, Poverty, and the Demand for State Lotteries," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(3), pages 545-570, July.
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    5. Emanuele Ciani & Roberto Torrini, 2019. "The Geography of Italian Income Inequality: Recent Trends and the Role of Employment," Politica economica, Società editrice il Mulino, issue 2, pages 173-208.
    6. Massimo Baldini & Giulia Mancini & Giovanni Vecchi, 2018. "No country for young people. Poverty and age in Italy, 1948-2018," HHB Working Papers Series 9, The Historical Household Budgets Project.
    7. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
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    More about this item

    Keywords

    Income; Gambling; Inequality; Italy.;
    All these keywords.

    JEL classification:

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

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