Skip to content

Research Paper PSE Working Papers 2009-09

Winning big but feeling no better? The effect of lottery prizes on physical and mental health

Authors

Publication date

2009

Abstract

We use British panel data to explore the exogenous impact of income on a number of individual health outcomes: general health status, mental health, physical health problems, and health behaviours (drinking and smoking). Lottery winnings allow us to make causal statements regarding the effect of income on health, as the amount won is largely exogenous. These positive income shocks have no significant effect on general health, but a large positive effect on mental health. This result seems paradoxical on two levels. First, there is a wellknown status gradient in health in cross-section data, and, second, general health should partly reflect mental health, so that we may expect both variables to move in the same direction. We propose a solution to the first apparent paradox by underlining the endogeneity of income. For the second, we show that exogenous income is associated with greater risky health behaviours: lottery winners smoke more and engage in more social drinking. General health will pick up both mental health and the effect of these behaviours, and so may not improve following a positive income shock. This paper presents the first microeconomic analogue of previous work which has highlighted the negative health consequences of good macroeconomic conditions.

Subjects

Income Dynamics, Well Being, and Health

Links

http://ideas.repec.org/p/pse/psecon/2009-09.html

Notes

working paper


Related publications

  1. Winning big but feeling no better? The effect of lottery prizes on physical and mental health

    Benedicte Apouey and Andrew E. Clark

    1. Income Dynamics
    2. Well Being
    3. Health
  2. Winning big but feeling no better? The effect of lottery prizes on physical and mental health

    Bénédicte H. Apouey and Andrew E. Clark

    1. Income Dynamics
    2. Well Being
    3. Health

#512526


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest