OFF: IQ and adult income

[Colin Allen]

Given the Pareto-like distribution of income (poor old Pareto!), it is apparent that any attempt to map income against IQ is based on what is, in statistical terms, probably an almost insignificant number of samples.  This rather throws into doubt any attempt to proclaim a strong correlation between IQ and income.
   
  Also, one needs to be very careful when discussing this topic as there are significant cultural and national variations that can have severe affects on the outcomes.  In other words, the correlation, such as it is, is very different in different cultures and countries.

M Holmes <fofp at HOLYROOD.ED.AC.UK> wrote:
  Gordon Hundley writes:

> On Apr 4, 2007, at 6:16 AM, M Holmes wrote:
> 
> > Also since the
> > more bright someone is, the better they're paid (60% correlation or
> > thereabouts?)

> Heh, that seems unlikely

Huh? I'd have thought that it seems pretty obvious. Because of a
squaring effect though, that 60% correlation means that IQ would predict
only just over a third of income variation.

> but if you have a reference for that I'd be 
> interested to see it, since income distribution is often described by 
> a pareto curve.

I think I last saw a reference in one of Prof Kanazawa's evolutionary
psychology papers, but the correlation is so well known in IQ research
as to be unremarkable. I'm sure there'll be copious references in
anything to do with Herrnstein and Murray's work on The Bell Curve too. 

http://www.lse.ac.uk/collections/methodologyInstitute/pdf/SKanazawa/I2006.pdf

More detailed info in the APA review of the state of IQ research after
the Bell Curve controversy:

http://www.michna.com/intelligence.htm

Short form: IQ (at age 8, and even to an extent at age 2) has quite a
lot to do with how many years in education you'll spend, what you'll do
when you grow up, and how much you'll earn. Having well-off parents
helps a bit too, but not as much as being smart.

On the other hand, it's a long way from determinism too.

FoFP