Effects of Lottery Wins on Household Labor Supply

Belloc, Ignacio (Universidad de Zaragoza) ; Molina, José Alberto (Universidad de Zaragoza) ; Velilla, Jorge (Universidad de Zaragoza)

Resumen: This paper analyzes the impact of lottery wins on household labor supply in the United Kingdom, using data from the British Household Panel Survey. We show that lottery wins do not have significant effects on hours of work of males, while female hours of work decrease in response to lottery wins. When we control for different lottery prize amounts, we find that large lottery wins reduce female annual hours of work by 120 h one and 2 years after the prize. The estimates are heterogeneous across age groups, levels of educational attainment, and household composition. These results suggest that shocks in unearned income may take some time to appear but have a lasting impact.

Idioma: Inglés

DOI: 10.1111/manc.70008

Año: 2025

Publicado en: The Manchester School (2025), [26 pp.]
ISSN: 1463-6786

Financiación: info:eu-repo/grantAgreement/ES/DGA/S32-23R
Financiación: info:eu-repo/grantAgreement/ES/MCIU/FPU20-03564

Tipo y forma: Article (Published version)

Área (Departamento): Área Fund. Análisis Económico (Dpto. Análisis Económico)