New estimates on the relationship between IQ, economic growth and welfare

Authors

R. W. Hafer, Lindenwood University

Document Type

Article

Publication Title

Intelligence

Abstract

Previous research has found that there is a statistically significant, positive link between country-level IQ and various measures of aggregate production, such as GDP. This study extends that analysis by estimating the relationship between IQ and a new measure of economic welfare. Developed by Jones and Klenow (2016), welfare is not a measure of spending on public assistance programs, but a theory-based empirical construct combining several metrics of economic well-being. Using this new economic welfare index for a large sample of countries (74), we find that IQ is a statistically significant (5% or better) and economically important predictor of welfare growth. A one-point increase in IQ is associated with a 4% increase in welfare growth for the average country. Our results support the view that national IQ is an important determinant of cross-country differences in economic activity and welfare.

DOI

https://doi.org/10.1016/j.intell.2017.01.009

Publication Date

3-2017

Recommended Citation

Hafer, R. W., "New estimates on the relationship between IQ, economic growth and welfare" (2017). Faculty Scholarship. 134.
https://digitalcommons.lindenwood.edu/faculty-research-papers/134