*Direct correspondence to Irwin L. Morris, Department of Government and Politics, University of Maryland, 3140 Tydings Hall, College Park, MD 20742 〈firstname.lastname@example.org〉. The authors will share all data and coding materials upon request for purpose of replication. The authors thank participants at sessions of the 2004 Public Choice and 2004 American Political Science Association meetings, the editor, and anonymous reviewers of this journal for their useful comments and suggestions on previous drafts of this article.
The Lottery and Income Inequality in the States*
Version of Record online: 11 NOV 2005
Social Science Quarterly
Volume 86, Issue Supplement s1, pages 996–1012, December 2005
How to Cite
Freund, E. A. and Morris, I. L. (2005), The Lottery and Income Inequality in the States. Social Science Quarterly, 86: 996–1012. doi: 10.1111/j.0038-4941.2005.00333.x
- Issue online: 11 NOV 2005
- Version of Record online: 11 NOV 2005
Objective. Since the early 1970s, income inequality in the United States has increased dramatically. We examine the impact of state lotteries on income inequality in the American states from 1976–1995.
Methods. We use cross-sectional time-series data to evaluate the effect of lotteries as well as those of other state tax policies, redistributive programs, and demographic factors on income inequality.
Results. We find that state lotteries foster income concentration. Ceteris paribus, states with lotteries have higher levels of income inequality than those states without a lottery. We also find that additional demographic and policy factors have an impact on income inequality in the states.
Conclusions. One of the most important policy-oriented determinants of income inequality is the lottery and a significant portion of the increase in income inequality over our two-decade time period is attributable to the increasing prevalence and popularity of state lotteries.