Today the Journal of Labor Research published an interesting report, summarized in this 20-page document, noting that people who drink alcohol make more money than people who don’t — and people who go out to bars make the most money of all. From the executive summary:
A number of theorists assume that drinking has harmful economic effects, but data show that drinking and earnings are positively correlated. We hypothesize that drinking leads to higher earnings by increasing social capital. If drinkers have larger social networks, their earnings should increase. Examining the General Social Survey, we find that self-reported drinkers earn 10-14 percent more than abstainers, which replicates results from other data sets. We then attempt to differentiate between social and nonsocial drinking by comparing the earnings of those who frequent bars at least once per month and those who do not. We find that males who frequent bars at least once per month earn an additional 7 percent on top of the 10 percent drinkers’ premium. These results suggest that social drinking leads to increased social capital.
What a perfect report for a Friday afternoon.
UPDATE: I fiddled with this a bit to note that the document is more of a “report” than a “study.”