Does Money Strengthen Our Social Ties? Longitudinal Evidence of Lottery Winners

Joan Costa-Font and Nattavudh Powdthavee

No 14489, IZA Discussion Papers from IZA Network @ LISER

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 (

Keywords: income; neighborhood; friendships; unearned income; socialization effect; lottery; social ties (search for similar items in EconPapers)
JEL-codes: Z1 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2021-06
New Economics Papers: this item is included in nep-ltv, nep-net, nep-pay, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
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Published - published in: Rationality & Society , 2023, 35 (2), 139-166.

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Related works:
Journal Article: Does money strengthen our social ties? Longitudinal evidence of lottery winners (2023)
Working Paper: Does money strengthen our social ties? Longitudinal evidence of lottery winners (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp14489

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