New Estimates on the Relationship between IQ, Economic Growth and Welfare
32 Pages Posted: 2 Nov 2016
Date Written: November 1, 2016
A large body of research has found that there is a statistically significant, positive link between country-level IQ and various measures of economic activity, such as GDP growth. This study extends that analysis by estimating the relationship between IQ and welfare growth. Using Jones and Klenow’s (2016) new estimates of economic welfare, we find that IQ is a statistically and economically significant predictor of welfare growth for a large sample of countries. Our results add to the familiar conclusion that national IQ is an important determinant explaining cross-country differences in economic activity and well-being.
Keywords: Economic Growth, Welfare, IQ
JEL Classification: O15,O17
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