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Wealth, Health, and Child Development: Evidence from Administrative Data on Swedish Lottery Players

David Cesarini (), Erik Lindqvist (), Robert Östling () and Björn Wallace ()
Additional contact information
Björn Wallace: University of Cambridge, Postal: Cambridge, United Kingdom

No 1060, Working Paper Series from Research Institute of Industrial Economics

Abstract: We use administrative data on Swedish lottery players to estimate the causal impact of substantial wealth shocks on players' own health and their children's health and developmental outcomes. Our estimation sample is large, virtually free of attrition, and allows us to control for the factors conditional on which the prizes were randomly assigned. In adults, we find no evidence that wealth impacts mortality or health care utilization, with the possible exception of a small reduction in the consumption of mental health drugs. Our estimates allow us to rule out effects on 10-year mortality one sixth as large as the cross-sectional wealth-mortality gradient. In our intergenerational analyses, we find that wealth increases children's health care utilization in the years following the lottery and may also reduce obesity risk. The effects on most other child outcomes, which include drug consumption, scholastic performance, and skills, can usually be bounded to a tight interval around zero. Overall, our findings suggest that in affluent countries with extensive social safety nets, causal effects of wealth are not a major source of the wealth-mortality gradients, nor of the observed relationships between child-developmental outcomes and household income.

Keywords: Health; Mortality; Healthcare; Child health; Child development; Human capital; Wealth; Income; Lotteries (search for similar items in EconPapers)
JEL-codes: I10 I14 J24 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2015-03-12, Revised 2015-10-09
New Economics Papers: this item is included in nep-dem and nep-hea
References: View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

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Related works:
Journal Article: Wealth, Health, and Child Development: Evidence from Administrative Data on Swedish Lottery Players (2016) Downloads
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