The paper investigates the relationships of cognitive human capital (a.k.a. intelligence) with growth in per capita GDP between 1975 and 2009. The following results were obtained: (1) Measures of IQ and school achievement, but not length of schooling, predict economic growth; (2) IQ and school achievement are highly correlated, and can be combined into a composite measure of intelligence; (3) T...

The singular focus of public debate on the "top 1 percent" of households overlooks the component of earnings inequality that is arguably most consequential for the "other 99 percent" of citizens: the dramatic growth in the wage premium associated with higher education and cognitive ability. This Review documents the central role of both the supply and demand for skills in shaping inequality, di...

Th e research propose s a structural equation model (SEM) that integrates four latent variables: human resources skills, fl exibility, agility, and the economic supply chain (SC) performance for wineries that together include fi fteen observed variables. Th e data was obtained from 64 surveys applied to managers in the wineries in La Rioja, Spain. Direct, the indirect and total eff ects are ana...

This paper studies the economic determinants of the inter-sectoral allocation of skills within an R&Dbased growth model with human capital accumulation. I find that steady-state growth is driven only by incentives to accumulate skills and is independent of scale effects. In the model imperfect competition has a positive growth effect, while influencing the allocation of human capital to the dif...

Economic analysis has so far said little about how an individual's cognitive skills (CS) are related to the individual's economic preferences in different choice domains, such as risk taking or saving, and how preferences in different domains are related to each other. Using a sample of 1,000 trainee truckers we report three findings. First, there is a strong and significant relationship betwee...

I takes little analysis to see that schooling levels differ dramatically between developing and developed countries. Building upon several decades of thought about human capital—and centuries of general attention to education in the more advanced countries—it is natural to believe that a productive development strategy would be to raise the schooling levels of the population. And, indeed, this ...

We provide evidence that the robust association between cognitive skills and economic growth reflects a causal effect of cognitive skills and supports the economic benefits of effective school policy. We develop a new common metric that allows tracking student achievement across countries, over time, and along the within-country distribution. Extensive sensitivity analyses of cross-country grow...

Do Better Schools Lead to More Growth? Cognitive Skills, Economic Outcomes, and Causation We investigate whether a causal interpretation of the robust association between cognitive skills and economic growth is appropriate and whether cross-country evidence supports a case for the economic benefits of effective school policy. We develop a new common metric that allows tracking student achieveme...

Different economic characteristics between developing and developed countries may require worker with different skills, resulting in different returns to the same ability. Moreover, it is also possible that different countries require different skills depending on their economic fundamentals. This paper provides evidence of the hypotheses above by comparing the labour market returns to numeracy...