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Abstract: Economists have long been interested in the extent to which economic resources affect decisions to marry and divorce. However, this issue has been difficult to address empirically due to a lack of exogenous income shocks. We overcome this problem by exploiting the randomness of the Florida Lottery and comparing recipients of large prizes to those of small prizes. Results indicate that while positive income shocks of 25, 000 to 50, 000 do not cause statistically significant or economically meaningful changes in divorce rates, single women are less likely to marry as a result of the additional income.
Hankins et al. (Sat,) studied this question.
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