Labor Supply Effects of Winning a Lottery

25 Pages Posted: 16 Nov 2015

See all articles by Matteo Picchio

Matteo Picchio

Marche Polytechnic University - Department of Economic and Social Science; IZA Institute of Labor Economics; SHERPPA - Ghent University

Sigrid Suetens

University of Antwerp - Faculty of Applied Economics; Tilburg University

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

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Abstract

This paper investigates how winning a substantial lottery prize affects labor supply. Analyzing data from Dutch State Lottery winners, we find that earnings are affected but not employment. Lottery prize winners reduce their hours of work but they are not very likely to withdraw from the labor force. We also find that the effects of lottery prizes last for several years and materialize predominantly among young single individuals without children.

Keywords: labor supply, income effects, wealth shocks, lottery players

JEL Classification: J22, J29

Suggested Citation

Picchio, Matteo and Suetens, Sigrid and van Ours, Jan C., Labor Supply Effects of Winning a Lottery. IZA Discussion Paper No. 9472. Available at SSRN: https://ssrn.com/abstract=2690721

Matteo Picchio (Contact Author)

Marche Polytechnic University - Department of Economic and Social Science ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
+39 071 220 7176 (Phone)

HOME PAGE: http://www.univpm.it/matteo.picchio

IZA Institute of Labor Economics ( email )

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

SHERPPA - Ghent University ( email )

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Ghent, B-9000
Belgium

Sigrid Suetens

University of Antwerp - Faculty of Applied Economics ( email )

Prinsstraat 13
Antwerp, B-2000
Belgium
+32 3 220 40 38 (Phone)

Tilburg University

Postbus 90153
Tilburg, DC 5000 LE
Netherlands

Jan C. Van Ours

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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