Asbjørn G. Andersen
, Andreas Kotsadam
and Vincent Somville
Asbjørn G. Andersen: Ragnar Frisch Centre for Economic Research
Andreas Kotsadam: Ragnar Frisch Centre for Economic Research
Vincent Somville: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Abstract: Do better material conditions improve well-being and mental health? Or does any positive relationship merely reflect that psychological well-being promotes economic success? We supply new responses to these questions by comparing winners and losers from a large Ethiopian housing lottery in a preregistered analysis. Winners gain access to better housing, experience a substantial increase in wealth, and report higher levels of overall life satisfaction and lower levels of financial distress. However, we find no effects of winning on psychological distress, suggesting that depression and anxiety involve other causal determinants and are less sensitive to economic conditions than life satisfaction is.
87 pages, April 26, 2021
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