Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Does Drinking Truly Cut Down Individual Income?

Authors
Ke Jiang1, *,a, , Xingpei Li2, *, b, , Zening Zhao3, *, c,
1Nanjing Audit University, School of Crowe Chinese Auditing.
2China Agricultural University, College of Economics and Management.
3Nanjing Audit University, School of Crowe Chinese Auditing.

These authors contributed equally.

*Corresponding author. Email: a182021002@stu.nau.edu.cn
Corresponding Authors
Ke Jiang, Xingpei Li, Zening Zhao
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.086How to use a DOI?
Keywords
Alcohol consumption; Drinking frequency; Income; Gender difference
Abstract

This paper examines whether drinking frequency is related to residents’ income. Based on National Longitudinal Survey of Youth (NLSY) data, we find an inverted U-shaped relationship between them. Then, residents’ drinking frequency in 1989 is utilized as an instrumental variable to modify the endogeneity, verifying the result that moderate drinking will increase residents’ income and the best drinking frequency is 15.03 times per month. We explain the conclusion from the mechanism of improving health status and increasing social intercourse opportunities. On this basis, a gender heterogeneity analysis is carried out on the impact of drinking frequency on income. According to the results, the income promotion effect and optimal drinking frequency of moderate drinking in men are significantly higher than those in women. Moreover, the income of women in childbearing period is mainly affected by marriage and children, while drinking behaviour is not closely related to it. These results shed light for the formation of residents’ healthy drinking habits and provided substantial evidence for measuring the economic effect on alcohol consumption.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
10.2991/aebmr.k.220307.086
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.086How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Ke Jiang
AU  - Xingpei Li
AU  - Zening Zhao
PY  - 2022
DA  - 2022/03/26
TI  - Does Drinking Truly Cut Down Individual Income?
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 534
EP  - 540
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.086
DO  - 10.2991/aebmr.k.220307.086
ID  - Jiang2022
ER  -