Iq In The Production Function: Evidence From Immigrant Earnings
Abstract"We show that a country's average IQ score is a useful predictor of the wages that immigrants from that country earn in the United States, whether or not one adjusts for immigrant education. Just as in numerous microeconomic studies, 1 IQ point predicts 1% higher wages, suggesting that IQ tests capture an important difference in cross-country worker productivity. In a cross-country development accounting exercise, about one-sixth of the global inequality in log income can be explained by the effect of large, persistent differences in national average IQ on the private marginal product of labor. This suggests that cognitive skills matter more for groups than for individuals." ("JEL" J24, J61, O47) Copyright (c) 2009 Western Economic Association International.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 48 (2010)
Issue (Month): 3 (07)
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Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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- Jones, Garett, 2012. "Cognitive skill and technology diffusion: An empirical test," Economic Systems, Elsevier, vol. 36(3), pages 444-460.
- Isaac Kalonda-Kanyama & Oasis Kodila-Tedika, 2012.
"Quality of Institutions: Does Intelligence Matter?,"
308, Economic Research Southern Africa.
- Isaac Kalonda-Kanyama & Oasis Kodila-Tedika, 2012. "Quality of Institutions : Does Intelligence Matter?," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 201206, University of Kansas, Department of Economics, revised Apr 2012.
- Kodila-Tedika, Oasis, 2012. "Governance and Intelligence: Empirical Analysis from African Data," MPRA Paper 39937, University Library of Munich, Germany.
- Morgan Kelly & Joel Mokyr & Cormac Ó Gráda, 2013. "Precocious Albion: a New Interpretation of the British Industrial Revolution," Working Papers 201311, School Of Economics, University College Dublin.
- Niklas Potrafke, 2011.
"Intelligence and Corruption,"
Working Paper Series of the Department of Economics, University of Konstanz
2011-36, Department of Economics, University of Konstanz.
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