Lottery Wins and Employment in a Low-Income Country: Impacts and Mechanisms

B-Tier
Journal: Economic Development & Cultural Change
Year: 2024
Volume: 73
Issue: 1
Pages: 61 - 86

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this study, we examine whether a positive income shock, measured by lottery wins, affects labor supply and the employment of individuals in Vietnam using Vietnam Living Standard Surveys 1993 and 1998. We do not find significant effects of lottery wins on the probability of working or on working hours. However, we find that lottery wins tend to be invested in productive assets and nonfarm household businesses. As a result, individuals from lottery-winning households tend to quit their wage-earning jobs and move to nonfarm self-employment. A 1% increase in lottery winnings results in a 0.22% increase in nonfarm income and a 0.056% increase in per capita income (excluding lottery winnings).

Technical Details

RePEc Handle
repec:ucp:ecdecc:doi:10.1086/726536
Journal Field
Development
Author Count
2
Added to Database
2026-01-26