Income
Some researchers claim that "in economic terms it appears that the IQ score measures something with decreasing marginal value. It is important to have enough of it, but having lots and lots does not buy you that much."[74][75]
Other studies show that ability and performance for jobs are linearly related, such that at all IQ levels, an increase in IQ translates into a concomitant increase in performance.[76] Charles Murray, coauthor of The Bell Curve, found that IQ has a substantial effect on income independently of family background.[77]
Taking the above two principles together, very high IQ produces very high job performance, but no greater income than slightly high IQ (and some studies show that very high IQ produces somewhat lower income than slightly high IQ [78][79]
The American Psychological Association's report Intelligence: Knowns and Unknowns[9] states that IQ scores account for about one-fourth of the social status variance and one-sixth of the income variance. Statistical controls for parental SES eliminate about a quarter of this predictive power. Psychometric intelligence appears as only one of a great many factors that influence social outcomes.[9]
One reason why some studies claim that IQ only accounts for a sixth of the variation in income is because many studies are based on young adults (many of whom have not yet completed their education). On pg 568 of The g Factor, Arthur Jensen claims that although the correlation between IQ and income averages a moderate 0.4 (one sixth or 16% of the variance), the relationship increases with age, and peaks at middle age when people have reached their maximum career potential. In the book, A Question of Intelligence, Daniel Seligman cites an IQ income correlation of 0.5 (25% of the variance).
A 2002 study[80] further examined the impact of non-IQ factors on income and concluded that an offspring's inherited wealth, race, and schooling are more important as factors in determining income than IQ. For example, in 2004 African-American workers had the second-highest median earnings of American minority groups after Asian Americans[81] and among minority groups, only Asian Americans were more likely to hold white-collar occupations (management, professional, and related fields) despite the significant IQ gap between African and Asian Americans.[82]
Some researchers claim that "in economic terms it appears that the IQ score measures something with decreasing marginal value. It is important to have enough of it, but having lots and lots does not buy you that much."[74][75]
Other studies show that ability and performance for jobs are linearly related, such that at all IQ levels, an increase in IQ translates into a concomitant increase in performance.[76] Charles Murray, coauthor of The Bell Curve, found that IQ has a substantial effect on income independently of family background.[77]
Taking the above two principles together, very high IQ produces very high job performance, but no greater income than slightly high IQ (and some studies show that very high IQ produces somewhat lower income than slightly high IQ [78][79]
The American Psychological Association's report Intelligence: Knowns and Unknowns[9] states that IQ scores account for about one-fourth of the social status variance and one-sixth of the income variance. Statistical controls for parental SES eliminate about a quarter of this predictive power. Psychometric intelligence appears as only one of a great many factors that influence social outcomes.[9]
One reason why some studies claim that IQ only accounts for a sixth of the variation in income is because many studies are based on young adults (many of whom have not yet completed their education). On pg 568 of The g Factor, Arthur Jensen claims that although the correlation between IQ and income averages a moderate 0.4 (one sixth or 16% of the variance), the relationship increases with age, and peaks at middle age when people have reached their maximum career potential. In the book, A Question of Intelligence, Daniel Seligman cites an IQ income correlation of 0.5 (25% of the variance).
A 2002 study[80] further examined the impact of non-IQ factors on income and concluded that an offspring's inherited wealth, race, and schooling are more important as factors in determining income than IQ. For example, in 2004 African-American workers had the second-highest median earnings of American minority groups after Asian Americans[81] and among minority groups, only Asian Americans were more likely to hold white-collar occupations (management, professional, and related fields) despite the significant IQ gap between African and Asian Americans.[82]
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