Long-Run Effects of Lottery Wealth on Psychological Well-Being. (12th February 2020)

• Record Type: Journal Article
• Authors: Lindqvist, Erik; Östling, Robert; Cesarini, David
• Is Part Of: Review of economic studies. Volume 87:Number 6(2020)
• Page Start: 2703
• Page End: 2726
• Publication Date: 2020-02-12
• Subjects: Happiness -- well-being -- mental health -- lottery; I31 -- I39 -- C31; Economics -- Periodicals; 330
• DOI: 10.1093/restud/rdaa006
• Languages: English
• ISSNs: 0034-6527

Abstract

Abstract: We surveyed a large sample of Swedish lottery players about their psychological well-being 5–22 years after a major lottery event and analysed the data following pre-registered procedures. Relative to matched controls, large-prize winners experience sustained increases in overall life satisfaction that persist for over a decade and show no evidence of dissipating over time. The estimated treatment effects on happiness and mental health are significantly smaller. Follow-up analyses of domain-specific aspects of life satisfaction implicate financial life satisfaction as an important mediator for the long-run increase in overall life satisfaction.