An Econometric Analysis of Alcohol Consumption and Its Relationship to Social, Gender, and Economic Factors

Alcohol consumption is associated with significant social and economic challenges for nations worldwide, including alcohol-related healthcare costs and alcohol-related crime. According to the U.S. Center for Disease Control (CDC), even moderate drinking correlates with greater health risks compared with not drinking at all. These health risks include physical harm to a person’s heart, brain, liver, and other organs; impaired social functioning; reduced work performance; and increased incidence of alcohol-related violence and injury (e.g., physical and sexual assault and drunk driving-related injuries and death). Although personal health and social problems are correlated with alcohol consumption across genders, women experience disproportionately worse problems associated with alcohol-related crime and family disruption. At the societal level, alcohol use coincides with substantial negative economic problems, including increased healthcare costs, often covered by the government; reduced worker productivity; and higher criminal justice system costs. This paper applies an econometric analysis to evaluate the association between alcohol consumption and key social and economic factors and suggests actions that business firms, government entities, universities, and other organizations can take to reduce alcohol-related harm, such as encouraging sobriety in the workplace, offering alcohol-related counseling services, and not establishing associations with nor accepting payments of any kind from alcohol beverage companies. The findings have implications for business managers, government leaders, policy-makers, and others.