Jackpot? Gender Differences in the Effects of Lottery Wins on Divorce

Presented at ISA RC28 Spring Conf., Univ. Essex, April 13–16, 2011

38 Pages Posted: 11 Feb 2014

Date Written: April 14, 2011

Abstract

In this paper, information on lottery wins from the British Household Panel Survey is exploited to investigate the effects of exogenous positive income shocks on family life. By comparing big with small lottery winners (N=2,618), it is investigated whether couples divorce more or less after winning, depending on the amount won and the gender of the winner. The paper shows that lottery wins postpone separation and divorce when men win, whereas no effects are found when women win.

The observed effects are partly explained by changes in consumption and satisfaction. Lottery wins only increase male satisfaction and only if men win. Men spend their lottery money on activities that increase their individual satisfaction, whereas women with low wage bargaining power spend it on goods that benefit the household but do not increase individual satisfaction.

Keywords: Relationship Processes, Divorce, Gender, Family, Family Resource Management

Suggested Citation

Boertien, Diederik, Jackpot? Gender Differences in the Effects of Lottery Wins on Divorce (April 14, 2011). Presented at ISA RC28 Spring Conf., Univ. Essex, April 13–16, 2011, Available at SSRN: https://ssrn.com/abstract=2022637 or http://dx.doi.org/10.2139/ssrn.2022637

Diederik Boertien (Contact Author)

Universitat Pompeu Fabra ( email )

Ramon Trias Fargas, 25-27
Barcelona, E-08005
Spain

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