Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245540 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14489
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the effect of lottery wins on social ties and support network in the United Kingdom. On average, we find that winning more in the lottery increases the probability of meeting friends on most days, which is consistent with the complementary effect of income on social ties. The opposite is true with regards to social ties held for more instrumental reasons such as talking to neighbors. Winning more in the lottery also lessens an individual support network consistently with a substitution for instrumental social ties. However, further robustness checks reveal that the average lottery effects are driven by the few outliers of very large wins in the sample, thus suggesting that small to medium-sized wins (<£10k) may not be enough to change people's social ties and support network in a substantial way.
Subjects: 
income
lottery
socialization effect
unearned income
friendships
neighborhood
social ties
JEL: 
Z1
Document Type: 
Working Paper

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