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HomeEconomyThe plateauing of cognitive potential amongst high earners

The plateauing of cognitive potential amongst high earners


Are the best-paying jobs with the best status completed by people of nice intelligence? Previous research discover job success to extend with cognitive potential, however don’t look at how, conversely, potential varies with job success. Stratification theories recommend that social background and cumulative benefit dominate cognitive potential as determinants of excessive occupational success. This leads us to hypothesize that among the many comparatively profitable, common potential is concave in earnings and status. We draw on Swedish register knowledge containing measures of cognitive potential and labour-market success for 59,000 males who took a obligatory navy conscription check. Strikingly, we discover that the connection between potential and wage is robust general, but above €60,000 per yr potential plateaus at a modest degree of +1 commonplace deviation. The highest 1 per cent even rating barely worse on cognitive potential than these within the earnings strata proper beneath them. We observe an analogous however much less pronounced plateauing of potential at excessive occupational status.

That’s from a brand new paper by Marc Keuschnigg, Arnout van de Rijt3, and Thijs Bol.

By way of Steve Stewart-Williams.

The submit The plateauing of cognitive potential amongst high earners appeared first on Marginal REVOLUTION.



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