Long-run Effects of Lottery Wealth on Psychological Well-being

We surveyed a large sample of Swedish lottery players about their psychological well-being 5-22 years after a major lottery event and analyzed the data following pre-registered procedures. Relative to matched controls, large-prize winners experience sustained increases in overall life satisfaction that persist for over a decade and show no evidence of dissipating over time. The estimated treatment effects on happiness and mental health are significantly smaller. Follow-up analyses of domain-specific aspects of life satisfaction implicate financial life satisfaction as an important mediator for the long-run increase in overall life satisfaction.

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