Thursday, September 14, 2006

I think I'll have a Drink

I stop by the Reason Foundation website regularly to see what the hard core libertarians are talking about. I ran across this today and had to share it with everyone. They've done a study that purports to show that social drinkers make more money than non drinkers.

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.

This seems like an opportune time to mention that we'll be hosting a wine tasting at the end of the month. Details to come......

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