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Gambling and the Use of Credit: An Individual and Household Level Analysis

31 Pages Posted: 15 Mar 2010  

Sarah Brown

University of Sheffield - Department of Economics; IZA Institute of Labor Economics

Andy Dickerson

University of Warwick - Warwick Institute for Employment Research

Jolian McHardy

University of Sheffield - Department of Economics

Karl Taylor V

University of Sheffield - Department of Economics

Abstract

We explore the relationship between gambling and other forms of risk-taking behaviour, i.e. exposure to debt and the use of credit, at the individual and household level using representative pooled cross-section data drawn from the UK Expenditure and Food Surveys (EFS), 2001 to 2007. Gambling and the use of credit are shown to be positively correlated at the household level. While both the incidence and amount of gambling vary according to household income, the positive association between gambling and the use of credit is remarkably stable across household income. In addition to our household level analysis, we also explore the prevalence of intra-household gambling, which has attracted relatively limited attention in the existing literature. It is apparent that there is strong intra-household correlation in both gambling activity and in the use of credit, with somewhat stronger relationships in lower income households.

Keywords: risk-taking, gambling, credit, debt

JEL Classification: D14, D81, L83

Suggested Citation

Brown, Sarah and Dickerson, Andy and McHardy, Jolian and Taylor, Karl, Gambling and the Use of Credit: An Individual and Household Level Analysis. IZA Discussion Paper No. 4804. Available at SSRN: https://ssrn.com/abstract=1570422

Sarah Brown (Contact Author)

University of Sheffield - Department of Economics

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Andy Dickerson

University of Warwick - Warwick Institute for Employment Research ( email )

Jolian McHardy

University of Sheffield - Department of Economics ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom
+44 0114 22 23460 (Phone)
+44 114 222 3458 (Fax)

HOME PAGE: http://www.shef.ac.uk/economics/staff/jmchardy/index.html

Karl B. Taylor V

University of Sheffield - Department of Economics ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

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