From: http://www.nber.org/feldstein/pi99.html
The problem of low human capital as a source of poverty is not just a matter of schooling andtraining, but also low cognitive ability. As I read the evidence, while variations in cognitiveability (IQ) close to the mean score do not have much impact on individuals wage rates,individuals with extremely low levels of cognitive ability (IQ levels below 80) have a very hardtime earning a decent wage rate. This is not a fashionable view. Americans like to think that allmen and women are quite literally created equal and that education can therefore solve theproblem of low human capital and low earnings. Unfortunately, however, very low cognitiveability is likely to be a serious cause of poverty that cannot be remedied by education andtraining. Only when this is accepted will it be possible to develop appropriate new policies. |