• C++ Programming for Financial Engineering
    Highly recommended by thousands of MFE students. Covers essential C++ topics with applications to financial engineering. Learn more Join!
    Python for Finance with Intro to Data Science
    Gain practical understanding of Python to read, understand, and write professional Python code for your first day on the job. Learn more Join!
    An Intuition-Based Options Primer for FE
    Ideal for entry level positions interviews and graduate studies, specializing in options trading arbitrage and options valuation models. Learn more Join!

Alcohol use helps boost income: study

RussianMike

Joined
5/9/06
Messages
296
Points
26
http://www.breitbart.com/news/2006/09/14/060914140645.wl9uakm4.html

Alcohol use helps boost income: study
Sep 14 10:07 AM US/Eastern

People who consume alcohol earn significantly more at their jobs than non-drinkers, according to a US study that highlighted "social capital" gained from drinking.
The study published in the Journal of Labor Research Thursday concluded that drinkers earn 10 to 14 percent more than teetotalers, and that men who drink socially bring home an additional seven percent in pay.

"Social drinking builds social capital," said Edward Stringham, an economics professor at San Jose State University and co-author of the study with fellow researcher Bethany Peters.

"Social drinkers are out networking, building relationships, and adding contacts to their BlackBerries that result in bigger paychecks."

The authors acknowledged their study, funded by the Reason Foundation, a libertarian think tank, contradicted research released in 2000 by the Harvard School of Public Health.

"We created our hypothesis through casual observation and examination of scholarly accounts," the authors said.

"Drinkers typically tend to be more social than abstainers."

The researchers said their empirical survey backed up the theory, and said the most likely explanation is that drinkers have a wider range of social contacts that help provide better job and business opportunities.

"Drinkers may be able to socialize more with clients and co-workers, giving drinkers an advantage in important relationships," the researchers said.

"Drinking may also provide individuals with opportunities to learn people, business, and social skills."

They also said these conclusions provide arguments against policies aimed at curbing alcohol use on university campuses and public venues.

"Not only do anti-alcohol policies reduce drinkers' fun, but they may also decrease earnings," the study said.

"One of the unintended consequences of alcohol restrictions is that they push drinking into private settings. This occurred during the Alcohol Prohibition of 1920-1933 and is happening on college campuses today. By preventing people from drinking in public, anti-alcohol policies eliminate one of the most important aspects of drinking: increased social capital."

The researchers found some differences in the economic effects of drinking among men and women. They concluded that men who drink earn 10 percent more than abstainers and women drinkers earn 14 percent more than non-drinkers.

However, unlike men, who get a seven percent income boost from drinking in bars, women who frequent bars at least once per month do not show higher earnings than women drinkers who do not visit bars.

"Perhaps women increase social capital apart from drinking in bars," the researchers said in an effort to explain the gender gap.
Click to expand...
 
I don't really buy this, or it could happen to be true. But you don't really need *STUDIES*.

Using very simple probability, Alcohol comsumers have approx. 50% chances to earn more than non-alcohol consumers(there is a very rare chance that they will equal). Sometimes some companies just hire some *deep-learned* researchers to announce something nonsense. I still remember in mid-1990s, there were two scientists revealed that they were hired to make an scientific report about that smoking was good to health. :smt017
 
You dont buy that people who socialize more especially with their bosses get promoted quicker than those who dont? I think this argument is actually pretty obvious. It just happens to use alcohol as a factor i.e. going out to bars and socializing. This builds bonding which definitely helps
 
People who consume alcohol earn significantly more at their jobs than non-drinkers, according to a US study that highlighted "social capital" gained from drinking.
Click to expand...

The author is making a point which is not supported subsequently, or I would say the point is conceptually converted.

The content itself is quite good. I absolutely agree that socializing will benefit your capital. However, the major point there is "Socializing", Not "Acohol consumption". Without "Socializing", "Acohol consumption", which sounds like the direct relation to the earning in the standpoint, is meaningless. :smt030 .

F(x,y,z...) = wealth, where F is the function being wealth. F takes a lot of parameters in order to be wealthy. Do you think Alcohol will be in it? That's what the point is making.
 
I wonder what the incentive of this study was:
- promote drinking?
- find more logical reasons for drinkers to drink more?
- press non-drinkers to drink?

What is really the life-style that YOU want? Don't let others to force you into something that you didn't want.
Hope that every one finds good balance and just be happy.
 
Kevin, I agree with you completely. Btw by drinking socially I do not mean getting obsecenely socially drunk because that will ruin your chances. As far as being forced or not forced, the social drinking events at work, for example, are meant for bonding. Going out drinking or bowling are great ways to do this. In some jobs you can get away without socializing(back-office to use Push's term from last night). In others YOU WILL HAVE TO LEARN TO SUBMIT to what the group is doing if you want to move up. It's not only about how hard you work(that is academics). You also have to be liked/not disliked
 
Bridgett said:
What is really the life-style that YOU want? Don't let others to force you into something that you didn't want.
Hope that every one finds good balance and just be happy.
Click to expand...

And by the way you are never forced into anything, after a year or two you just subtlely (to use Dan's term) realize that you are not getting promoted etc. I'm sure that would not make anyone happy.
 
I'd agree with Mike on this. However, there definately tends to be a abstain factor for desk-traders between Monday-Wednesday. Thursday the drinking begins, and friday trading is dead between 2-3pm, even for OTC products.

Generally, a good job, a great salary & career is by no means synomous with drinking. Alot of folks can get caught up in drinking and sulking if things don't go their way career-wise. Drinker-be-ware.

ehehhehehe
 
I wonder if drinking increases income, or if high-income increases drinking. Is the study suggesting a correlation? or causality?

I like this line too: "The authors acknowledged their study, funded by the Reason Foundation, a libertarian think tank, contradicted research released in 2000 by the Harvard School of Public Health.
 
This might be the case of lurking variables :) Just like mentioned above, another wariable "socializing" maybe influencing income. I don't think it will matter much if I go to a bar and drink, say, pepsi vs. beer while socializing. Plus, the title "Alcohol use" suggests "the more you drink, the higher your income is" :) which is definitely not true.
 
I too am skeptical of this. Did the factor in the fact that many teetotalers are in the rural areas or the deep south, where incomes tend to be much less? Or the fact that some teetotalers are former alcoholics whose careers have suffered damage already? Etc. etc. Of course, you probably have plenty of agenda buried right in the story. They even make a rather tortured argument that not having alcoholic events on campus depresses future earnings for students, one I find rather hard to buy.

The authors have an awful good point - but I'm not sure it's the one they want to make. You have to network to get ahead; and, whether or not you have gin with your tonic seems to be besides the point.

Expect lots and lots more of these sorts of articles over the next several years, as politicians start to raise trial baloons on sin taxes for alcohol, especially in conjunction with health care reform. Compared to tobacco, beer in particular is much less heavily taxed and health costs due to alcoholism are, if anything, just as staggering.

Joe
 
What about smoking? I believe drink and smoking both helps on the income side, especially for ppl in the finance area. :)
Both hobbies make us more HUMAN! and more socialable :)
What's why we hit Grand Saloon every week during the semester!
 
Back
Top