The relationship between intelligence and economic status

Using the large and nationally representative NLSY97 and NLSY79 datasets, the relationship between IQ and economic status was estimated using different measurements of status and methods of aggregation. Aggregating various longitudinal measurements into a composite variable increased the correlation between IQ and income by about 25%, with permanent income and IQ correlating at about .41 to .54 depending on the estimation method and the dataset. The relationship between IQ and achievement was largely linear, in line with prior research.An aggregation of net worth, income, occupational status, and degree attainment from various longitudinal measurements correlated with IQ scores at .6, rising to about .7 when correcting for unreliability. This correlation existed between siblings reared in the same household, and after controlling for parental background and demographics, suggesting a causal relationship from IQ to economic status.