Drink Beer – Earn More

drink beer and earn moreI’ll raise a beer to that 😉 A new study by economists Bethany Peters and Edward Stringham has found that those who drink socially earn 10% or more than than those who don’t. The study found that social drinking helped people with their “social capital” – anything from a person’s charisma to the number of people in their social network.

This, in turn, helped their salary. For example, the authors say what might happen is that if a person has more social and business contacts, it may be easier for them to find a new job. Social drinking may also strengthen relationships with their co-workers and/or clients which could ultimately increase their salary.

Drinking anywhere, however, won’t work. To make the drinking pay off for your pocket book, it needs to be in with friends. The study found that those who drank in a social setting earned more than those who stayed home to drink alone. Some more from the study:

  • Women drinkers earned 14 percent more than non-drinkers.
  • Men drinkers earned 10 percent more than non-drinkers.
  • Men who went to a bar at least once a month in addition to being a social drinker earned an additional a 7 percent premium (17%) more than non-drinkers.
  • Women who went to a bar once a month, however, experienced no additional increase to their earnings.

    Source: money.com

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    3 Responses to Drink Beer – Earn More

    1. Pingback: Standard Deviant » Good news everybody

    2. MyFinanceForum.com says:

      I’ll take a pint of Guiness(tm) please!

    3. Kevin says:

      I agree with all of the authors’ suggestions as to why there is this correlation. But, I’d also add the fact that going to a bar at least once a month requires some extra income. You could also argue in the same way that owning a BMW causes you to have a higher income, when really your higher income allows you to AFFORD a BMW. People who have higher incomes can AFFORD going to a bar at least once a month. Now I realize drinking isn’t a luxury activity, and there many poor college students who go out drinking a lot even when they really can’t afford it, but I’ll bet this plays into it a little bit.

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