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The Effect Of Education On Cognitive Ability

Author

Listed:
  • TORBERG FALCH
  • SOFIA SANDGREN MASSIH

Abstract

We analyze whether the amount of schooling influences intelligence as measured by IQ tests. By use of a novel longitudinal dataset we are able to condition on early cognitive ability to account for selection into non-compulsory schooling when estimating the effect on cognitive ability at age 20. OLS estimates indicate that one year of schooling increases IQ by 2.8-3.5 points (about 0.2 standard deviations). When family income per family member and teacher evaluations of the individuals at age 10 are used as instruments for schooling and early cognitive ability, the return to schooling is estimated to 3.5-3.8 IQ points.
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Suggested Citation

  • Torberg Falch & Sofia Sandgren Massih, 2011. "The Effect Of Education On Cognitive Ability," Economic Inquiry, Western Economic Association International, vol. 49(3), pages 838-856, July.
    • Handle: RePEc:bla:ecinqu:v:49:y:2011:i:3:p:838-856
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    Cited by:

    1. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany – Heterogeneous Eff ects and Skill Formation," Ruhr Economic Papers 0446, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    2. Chen, Yi & Jiang, Sheng & Zhou, Li-An, 2020. "Estimating returns to education in urban China: Evidence from a natural experiment in schooling reform," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 218-233.
    3. Nicole Schneeweis & Vegard Skirbekk & Rudolf Winter-Ebmer, 2012. "Does schooling improve cognitive functioning at older ages?," Economics working papers 2012-11, Department of Economics, Johannes Kepler University Linz, Austria.
    4. Bijwaard, Govert E., 2022. "Educational differences in mortality and hospitalisation for cardiovascular diseases," Journal of Health Economics, Elsevier, vol. 81(C).
    5. Fei Hou & Fangnan Liao & Jie Liu & Hao Xiong, 2019. "Signing Auditors’ Foreign Experience and Debt Financing Costs: Evidence for Sustainability of Chinese Listed Companies," Sustainability, MDPI, vol. 11(23), pages 1-19, November.
    6. Bingley, Paul & Martinello, Alessandro, 2017. "The Effects of Schooling on Wealth Accumulation Approaching Retirement," Working Papers 2017:9, Lund University, Department of Economics.
    7. Mohammad Niaz Asadullah, Nazmul Chaudhury, 2013. "Primary Schooling, Student Learning, and School Quality in Rural Bangladesh-Working Paper 349," Working Papers 349, Center for Global Development.
    8. Vincent Y. S. Oh & Zhaoliang Yu & Eddie M. W. Tong, 2022. "Objective Income But Not Subjective Social Status Predicts Short-Term and Long-Term Cognitive Outcomes: Findings Across Two Large Datasets," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(1), pages 327-349, July.
    9. Yuhong Xu & Shih-Fen Cheng & Xinyu Chen, 2023. "Improving Quantal Cognitive Hierarchy Model Through Iterative Population Learning," Papers 2302.06033, arXiv.org, revised Feb 2023.
    10. Dahmann, Sarah C., 2017. "How does education improve cognitive skills? Instructional time versus timing of instruction," Labour Economics, Elsevier, vol. 47(C), pages 35-47.
    11. Kamhöfer, Daniel & Schmitz, Hendrik, 2013. "Analyzing Zero Returns to Education in Germany: Heterogeneous Effects and Skill Formation," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79910, Verein für Socialpolitik / German Economic Association.
    12. Daniele, Vittorio, 2013. "Does the intelligence of populations determine the wealth of nations?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 27-37.
    13. Bingley, Paul & Martinello, Alessandro, 2013. "Mental retirement and schooling," European Economic Review, Elsevier, vol. 63(C), pages 292-298.
    14. Jay Squalli, 2022. "Intelligence, Religiosity, and Environmental Emissions," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(3), pages 418-449, June.
    15. Burhan, Nik Ahmad Sufian & Md. Yunus, Melor & Tovar, María Elena Labastida & Burhan, Nik Mohd Ghazi, 2016. "Why are cognitive abilities of children so different across countries? The link between major socioeconomic factors and PISA test scores," MPRA Paper 77239, University Library of Munich, Germany.
    16. Govert E. Bijwaard & Kieron J. Barclay, 2025. "Pathways from education to mortality, mediated through income," Health Economics, John Wiley & Sons, Ltd., vol. 34(1), pages 18-44, January.
    17. Jung, Youngjoo & Mun, Sanghee, 2025. "Does single-sex schooling improve students' physical fitness?: Evidence from a natural experiment in South Korea," Economics Letters, Elsevier, vol. 250(C).
    18. Govert E. Bijwaard & Andrew M. Jones, 2019. "An IPW estimator for mediation effects in hazard models: with an application to schooling, cognitive ability and mortality," Empirical Economics, Springer, vol. 57(1), pages 129-175, July.
    19. Nikolaev, Boris & McGee, Jennifer, 2016. "Relative Verbal Intelligence and Happiness," MPRA Paper 78564, University Library of Munich, Germany.
    20. Silke Anger & Guido Heineck, 2010. "Do smart parents raise smart children? The intergenerational transmission of cognitive abilities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 1105-1132, June.
    21. Hegelund, Emilie Rune & Grønkjær, Marie & Osler, Merete & Dammeyer, Jesper & Flensborg-Madsen, Trine & Mortensen, Erik Lykke, 2020. "The influence of educational attainment on intelligence," Intelligence, Elsevier, vol. 78(C).
    22. Dawoon Jung & Tushar Bharati & Seungwoo Chin, 2021. "Does Education Affect Time Preference? Evidence from Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1451-1499.
    23. Nicole Schneeweis & Vegard Skirbekk & Rudolf Winter-Ebmer, 2014. "Does Education Improve Cognitive Performance Four Decades After School Completion?," Demography, Springer;Population Association of America (PAA), vol. 51(2), pages 619-643, April.
    24. Kunt Šimunović, Pınar, 2024. "Education increases patience: Evidence from a change in a compulsory schooling law," Economics & Human Biology, Elsevier, vol. 53(C).
    25. Oli Ahad Thakur & Bany‐Ariffin Amin Noordin & Bolaji Tunde Matemilola & Md. Kausar Alam & Doddy Setiawan, 2022. "Impact of goodwill on capital structure and the moderating role of investors' education," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2657-2677, October.

    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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