Intelligence, Human Capital, and Economic Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach

Garett Jones and W. Schneider

Journal of Economic Growth, 2006, vol. 11, issue 1, 93 pages

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 intelligence tests provide one useful measure of human capital. Using a new database of national average IQ, we show that in growth regressions that include only robust control variables, IQ is statistically significant in 99.8% of these 1330 regressions, easily passing a Bayesian model-averaging robustness test. A 1 point increase in a nation’s average IQ is associated with a persistent 0.11% annual increase in GDP per capita. Copyright Springer Science + Business Media, Inc. 2006

Keywords: Intelligence; Human capital; Economic growth; O47; J24; I20 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (103)

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Working Paper: Intelligence, Human Capital, and Economic Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach (2005)
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DOI: 10.1007/s10887-006-7407-2

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