The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries

∗ Cesarini: Center for Experimental Social Science, Department of Economics, New York University, NBER and Research Institute of Industrial Economics (IFN), Stockholm, Sweden. E-mail: [email protected]. Lindqvist: Department of Economics, Stockholm School of Economics and Research Institute of Industrial Economics (IFN), Stockholm, Sweden. E-mail: [email protected]. Notowidigdo: Northwestern University and NBER. E-mail: [email protected]. Östling: Institute for International Economic Studies, Stockholm University, Stockholm, Sweden. E-mail: [email protected]. We thank André Chiappori, David Domeij, Trevor Gallen, Erik Hurst, Che-Yuan Liang, Jonna Olsson, Jesse Shapiro, Johanna Wallenius, and seminar audiences at the AEA Annual Meeting, Bocconi, Chicago Booth, Cornell University, LSE, CREI-UPF, NBER Summer Institute, Northwestern University, the Rady School of Management, Stockholm University, and Uppsala University for helpful comments. We also thank Richard Foltyn, Renjie Jiang, Kristztian Kovacs, Odd Lyssarides, Svante Midander, and Erik Tengbjörk for excellent research assistance. This paper is part of a project hosted by the Research Institute of Industrial Economics (IFN). We are grateful to IFN Director Magnus Henrekson for his strong commitment to the project and to Marta Benkestock for superb administrative assistance. The project is financially supported by three large grants from the Swedish Research Council (B0213903), Handelsbanken’s Research Foundations (P2011:0032:1) and the Bank of Sweden Tercentenary Foundation (P15-0615:1). We also gratefully acknowledge financial support from the NBER Household Finance working group (22-2382-13-1-33-003), the NSF (1326635), and the Swedish Council for Working Life and Social Research (2011-1437).