Labour Supply Effects of Winning a Lottery | Zendy

Picchio Matteo | Zendy; Suetens Sigrid | Zendy; Ours Jan C. | Zendy

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Labour Supply Effects of Winning a Lottery

Author(s) -

Picchio Matteo,

Suetens Sigrid,

Ours Jan C.

Publication year - 2018

Publication title -

the economic journal

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 4.683

H-Index - 160

eISSN - 1468-0297

pISSN - 0013-0133

DOI - 10.1111/ecoj.12465

Subject(s) - lottery , earnings , economics , labour economics , work (physics) , labour supply , demographic economics , microeconomics , engineering , finance , mechanical engineering

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.

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