Economics rests upon a set of presumptions about how human beings are affected by income. Yet causal evidence is scant. This paper reports a longitudinal study of randomly selected lottery winners. Remarkably, we show that it takes almost three years before they enjoy their money. We develop a...

This paper uses longitudinal data to explore whether greater job status makes a person healthier. Taking the evidence as a whole, promotees do not exhibit a health improvement after promotion. Instead the data suggest that workers with good health are more likely to be promoted. In the private...

It has been known for centuries that the rich and famous have longer lives than the poor and ordinary. Causality, however, remains trenchantly debated. The ideal experiment would be one in which status and money could somehow be dropped upon a sub-sample of individuals while those in a control...

"The paper is an attempt to test whether there is a wage curve in western Germany and if so whether it might be explained by efficiency-wage forces. Such a theory makes two predictions. First, where the degree of supervision is low, wages will be high. Second, where the degree of supervision is...

This article is concerned with a body of work on happiness and age represented by important papers such as Mroczek and Kolarz (1998) and Mroczek and Spiro (2005). Using a large British data set, the paper presents new longitudinal evidence. It also points out that, perhaps unknown to many...

The causes of people's political attitudes are largely unknown. We study this issue by exploiting longitudinal data on lottery winners. Comparing people before and after a lottery windfall, we show that winners tend to switch towards support for a right-wing political party and to become less...

Many politicians believe they can intervene in the economy to improve people's lives. But can they? In a social experiment carried out in the United Kingdom, extensive in-work support was randomly assigned among 16,000 disadvantaged people. We follow a sub-sample of 3,500 single parents for 5...

The question of whether there is a connection between income and psychological well-being is a long-studied issue across the social, psychological, and behavioral sciences. Much research has found that richer people tend to be happier. However, relatively little attention has been paid to...

The question of whether there is a connection between income and psychological well-being is a long-studied issue across the social, psychological, and behavioral sciences. Much research has found that richer people tend to be happier. However, relatively little attention has been paid to...