Deng, Binbin (2010): Schooling and Wage Revisited: Does Higher IQ Really Give You Higher Income?
Download (460kB) | Preview
Traditional studies of returns-to-schooling have been generally concerned with several issues like the omitted variable bias, error-in-measurement bias and the endogeneity of schooling. While such inquiries are of much empirical importance, this paper tries to ask a different but non-negligible question: what should be interpreted from the individual ability measure per se in the wage equation? With data from well documented national surveys in the U.S., this paper is able to make a simple but fundamental argument: IQ level per se, holding all other personal characteristics constant, has negligible net effect in determining one’s income level and thus should not be used as the proper measure of the ability we want to quantify in the wage-determining process, i.e., the very ability to earn income.
|Item Type:||MPRA Paper|
|Original Title:||Schooling and Wage Revisited: Does Higher IQ Really Give You Higher Income?|
|Keywords:||return to schooling, ability measure, insignificance of IQ, emotional intelligence|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity
|Depositing User:||Binbin Deng|
|Date Deposited:||10 Jun 2010 16:40|
|Last Modified:||07 Aug 2016 08:57|
Arrazola, M., De Hevia, J., Risueño, M., and Sanz, J. F., 2003 “Returns to Education in Spain: Some Evidence on the Endogeneity of Schooling,” Education Economics, 11(3), pp. 293-304.
Ashenfelter, O., and Krueger, A., 1994 “Estimates of the Economic Return to Schooling from a New Sample of Twins,” American Economic Review, 84(5), pp. 1157 -1173.
Blackburn, M. L., and Neumark, D., 1995 “Are OLS Estimates of the Return to Schooling Biased Downward? Another Look,” The Review of Economics and Statistics, 77(2), pp. 217-230.
Blackburn, M. L., and Neumark, D., 1992 “Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials,” The Quarterly Journal of Economics, 107(4), pp.1421-1436.
Blundell, R., Dearden, L., and Sianesi, B., 2005 “Evaluating the Effect of Education on Earnings: Models, Methods and Results from the National Child Development Survey,” Journal of the Royal Statistical Society: Series A (Statistics in Society), 168(3), pp. 473-512.
Card, D., 1994 “Earnings, Schooling, and Ability Revisited,” NBER Working Papers No. 4832.
Card, D., 1995 “The Wage Curve: A Review,” Journal of Economic Literature, 33(2), pp. 285-299.
Callan, T., and Harmon, C. P., 1999 “The Economic Return to Schooling in Ireland,” Labour Economics, 6(4), pp. 543-550.
Cote, S., and Miners, C. T. H., 2006 “Emotional Intelligence, Cognitive Intelligence and Job Performance,” Administrative Science Quarterly, 51(1), pp. 1-28.
Dearden, L., and Sianesi, B., 2001 “Estimating the Returns to Education: Models, Methods and Results,” CEE Discussion Papers 0016, Centre for the Economics of Education, LSE.
Denny, K. J., and Harmon, C. P., 2000 “Education Policy Reform and the Return to Schooling from Instrumental Variables,” Econometric Society World Congress 2000 Contributed Papers 1422, Econometric Society.
Duflo, E., 2001 “Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence form an Unusual Policy Experiment,” American Economic Review, 91(4), pp. 795-813.
Griliches, Z., 1976 “Wages of Very Young Men,” Journal of Political Economy, 84(4), pp. S69-85.
Griliches, Z., 1977 “Estimating the Returns to Schooling: Some Econometric Problems,” Econometrica, 45(1), pp. 1-22.
Griliches, Z., 1977 “Education, Income, and Ability: Rejoinder,” Journal of Political Economy, 85(1), p. 215.
Gronau, R., 2003 “Zvi Griliches’ Contribution to the Theory of Human Capital,” NBER Working Papers No. 10081.
Harmon, C. P., and Oosterbeek, H., 2000 “The Returns to Education: A Review of Evidence, Issues and Deficiencies in the Literature,” CEE Discussion Papers 0005, Centre for the Economics of Education, LSE.
Harmon, C. P., Oosterbeek, H., and Walker, I., 2003 “The Returns to Education: Microeconomics,” Journal of Economic Surveys, 17(2), pp. 115-156.
Harmon, C. P., and Walker, I., 1995 “Estimates of the Economic Return to Schooling for the United Kingdom,” American Economic Review, 85(5), pp. 1278-1286.
Jayan, C., 2006 “Emotional Competence, Personality and Job Attitudes as Predictors of Job Performance,” Journal of Indian Academy of Applied Psychology, 32(2), pp. 135-144.
Klein, R., and Vella, F., 2006 “Estimating the Return to Endogenous Schooling Decisions for Australian Workers via Conditional Second Moments,” IZA Discussion Papers No. 2407, Institute for the Study of Labor (IZA).
Law, K. S., Wong, C., and Huang G., 2008 “The Effects of Emotional Intelligence on Job Performance and Life Satisfaction for the Research and Development Scientists in China,” Asian Pacific Journal of Management, 25(1), pp. 51-69.
Maluccio, J. A., 1998 “Endogeneity of Schooling in the Wage Function: Evidence from the Rural Philippines,” FCND Discussion Papers No. 54, International Food Policy Research Institute (IFPRI).
Mincer, J., 1958 “Investment in Human Capital and Personal Income Distribution,” Journal of Political Economy, 66, p. 281
Petrides, K. V., Frederickson, N., and Furnham, A., 2004 “The Role of Trait Emotional Intelligence in Academic Performance and Deviant Behaviour at School,” Personality and Individual Differences, 36, pp. 277–293.
Rummery, S., Vella, F., and Verbeek, M., 1999 “Estimating the Returns to Education for Australian Youth via Rank-order Instrumental Variables,” Labour Economics, 6(4), pp. 491-507.
Spence, A. M., 1973 “Job Market Signaling,” The Quarterly Journal of Economics, 87(3), pp. 355-374.
Trostel, P., Walker, I., and Woolley, P., 2002 “Estimates of the Economic Return to Schooling for 28 Countries,” Labour Economics, 9(1), pp. 1-16.
Bradberry, Travis, and Greaves, Jean, Emotional Intelligence 2.0. (San Francisco: Publishers Group West)
Gardner, Howard, Frames of mind: The Theory of Multiple Intelligences. (New York: Basic Books)
Available Versions of this Item
- Schooling and Wage Revisited: Does Higher IQ Really Give You Higher Income? (deposited 10 Jun 2010 16:40) [Currently Displayed]