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Labour Supply Effects of Winning a Lottery

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Listed:
  • Matteo Picchio
  • Sigrid Suetens
  • Jan C. van Ours

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.

Suggested Citation

  • Matteo Picchio & Sigrid Suetens & Jan C. van Ours, 2018. "Labour Supply Effects of Winning a Lottery," Economic Journal, Royal Economic Society, vol. 128(611), pages 1700-1729, June.
    • Handle: RePEc:wly:econjl:v:128:y:2018:i:611:p:1700-1729
    DOI: 10.1111/ecoj.12465
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other

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