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« The Economics of Economic Beliefs: Ideas, Interests and Expectations | Main | Kirzner wins the FSF-Nutek Award »

The Drinker's Bonus

How come drinkers earn more that non-drinkers? According to an NBER Working Paper:

We conclude that most likely the positive association between drinking and earnings is the result of the fact that ethanol is a normal commodity, the consumption of which increases with income, rather than an elixer that enhances productivity.
Philip Cook and Bethany Peters

We'll see about that.

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