Inequality and Gambling

Giovanni Ferri, Raffaele Lagravinese and Giuliano Resce ()

Economics & Statistics Discussion Papers from University of Molise, Department of Economics

Abstract: This study investigates the causal link between inequality and gambling on a distinct dataset that encompasses administrative records of gambling turnover by game type in Italian municipalities. Employing shift–share instruments, we find a substantial impact of inequality on gambling turnover. Moreover, we show that such impact is additional and larger than the impact of poverty and is biggest in less well-off Southern municipalities, especially concerning turnover generated from games closely associated with gambling-related issues. Given the documented regressive nature of gambling taxation, our results substantiate the concept of a hysteresis loop between inequality and gambling.

Keywords: Income; Gambling; Inequality; Italy. (search for similar items in EconPapers)
JEL-codes: I12 I14 (search for similar items in EconPapers)
Pages: 48
Date: 2024-04-15
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