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Intelligence, Human Capital, and Economic Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach

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  • Garett Jones
  • W. Schneider

Abstract

Human capital plays an important role in the theory of economic growth, but it has been difficult to measure this abstract concept. We survey the psychological literature on cross-cultural IQ tests and conclude that intelligence tests provide one useful measure of human capital. Using a new database of national average IQ, we show that in growth regressions that include only robust control variables, IQ is statistically significant in 99.8% of these 1330 regressions, easily passing a Bayesian model-averaging robustness test. A 1 point increase in a nation’s average IQ is associated with a persistent 0.11% annual increase in GDP per capita. Copyright Springer Science + Business Media, Inc. 2006

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Bibliographic Info

Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 11 (2006)
Issue (Month): 1 (03)
Pages: 71-93

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Handle: RePEc:kap:jecgro:v:11:y:2006:i:1:p:71-93

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Web page: http://www.springerlink.com/link.asp?id=102931

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Keywords: Intelligence; Human capital; Economic growth; O47; J24; I20;

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  1. Lack of dietary iodine threatens brain development in children
    by Heather Yeatman, Associate Professor in School of Health Sciences at University of Wollongong in The Conversation on 2013-06-18 20:41:12
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