INTELLIGENCE, HUMAN CAPITAL, AND ECONOMIC GROWTH: AN EXTREME-BOUNDS ANALYSIS (2004)
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@MISC{Jones04intelligence,human,
author = {Garett Jones and W. Joel Schneider},
title = {INTELLIGENCE, HUMAN CAPITAL, AND ECONOMIC GROWTH: AN EXTREME-BOUNDS ANALYSIS},
year = {2004}
}
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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.
