INTELLIGENCE, HUMAN CAPITAL, AND ECONOMIC GROWTH: AN EXTREME-BOUNDS ANALYSIS (2004)
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BibTeX
@MISC{Jones04intelligence,human,
author = {Garett Jones and W. Joel Schneider},
title = {INTELLIGENCE, HUMAN CAPITAL, AND ECONOMIC GROWTH: AN EXTREME-BOUNDS ANALYSIS},
year = {2004}
}
OpenURL
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 modern intelligence tests provide one useful measure of human capital. Using a new database of national average IQ along with a methodology derived from Sala-i-Martin [1997a], we show that in growth regressions that include only robust control variables, IQ is statistically significant in 99.7 % of these 1330 regressions. A 1 point increase in a nation’s average IQ is associated with a persistent 0.16 % annual increase in GDP per capita.







