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IQ: Economic Resource

• Intelligence
IQ: quotient, or IQ, is
a score derived
Economic from one of several
standardized tests
Resource designed to assess
human intelligence.
Compiled by
Mart Murdvee

The first ‘modern’ intelligence test Basics of Binet’ test:

• The first ‘modern’ intelligence test was devised in 1908, when
• Binet determined which questions (focused on
the School Board in Paris asked Alfred Binet to help screen AGE attention, memory, problem-solving skills)
out children who might become ‘backward’ in school, so that
served as the best predictors of school
special provision could be arranged. Binet simply devised
dozens of small school-type tasks – factual information, • Some children were able to answer more
sentence comprehension, mental arithmetic, arranging advanced questions that older children were
objects by size and so on – and, by trial and error, selected generally able to answer, while other children
those whose performance corresponded with school of the same age were only able to answer
attainment and age and discarded the rest. questions that younger children could typically
• Binet himself rejected the idea that he was measuring a ‘fixed,
innate’ intelligence, the ‘Binet method’ quickly became the chronological • The concept of a mental age, or a measure of
intelligence based on the average abilities of
Alfred Binet
(1857-1911) •
standard procedure for IQ test construction.
For example, the most popular test, the Stanford-Binet,
5678 children of a certain age group.
originated from translations of Binet's items with the addition 5678• For example: If 6 years old (chronological age)
of forty or so others. mental can ansver questions for 8 years olds, then his
RICHARDSON, KEN and SARAH NORGATE. "intelligence test." The Blackwell Dictionary of
mental age is 8.
Modern Social Thought. Outhwaite, William (ed). Blackwell Publishing, 2002.


Intelligence Quotient or I.Q. Psychometry. Measuring IQ.

William Stern noticed that even though TEST
AGE the gap between mental age and 1.
chronological age widens as a child 2.
matures, the ratio of mental age to ...
chronological age remains constant
(and remains essentially constant
throughout life). This constant ratio of
Personal test score
mental age divided by chronological
William Stern IQ = X 100
age was given the name "Intelligence Mean score of age group tests
Quotient" (1871-1938)

5678 TEST
mental 2. 2. 2. 2.
... ... ... ...
IQ = 8 / 6 X 100 = 133,3
5 6

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

IQ and Mental ability Louis Leon Thurstone

(1887 -1955)
7 primary abilities:
IQ < 70 - retarded
IQ = 70-80 - bordeline P - Perceptual speed
IQ = 80-90 - dull S - Spatial relations
N - Numerical ability
IQ = 90-110 - average
V - Verbal Comprehension
IQ = 110-120 - bright W - Word Fluency
IQ = 120-130 - superior M – Memory
IQ = 130 + - very superior R - Reasoning

7 8

Charles Edward Spearman Raymond B. Cattell

Used factor analysis of numerous
tests. Findings prompted Spearman • Crystallized intelligence - the ability
to propose a 2-factor theory of to use skills, knowledge, and
intelligence. experience. It does not equate to
• A single general factor was found memory or knowledge, but it does
in all tests of mental ability (g- rely on accessing information from
factor). long-term memory.
• In addition, each test had an • Fluid intelligence - capacity to think
Intelligence independent variance: "specific" logically and solve problems in novel
factor (s-factors). situations, independent of acquired
• Spearman argued that g is "mental knowledge
g-factor energy".

9 10

Raven’s Progressive Matrices Flynni effect

• The most common and popular
test administered to groups
ranging from 5-year-olds to the • The Flynn effect (IQ gains
• It is made of 60 multiple choice over time) means that different
questions, listed in order of
difficulty. This format is designed IQ tests will give different
to measure the test-taker's
reasoning ability, the eductive scores purely as a result of
("meaning-making") component
of Spearman's g. (g is often
referred to as general
when the tests were normed.

In each test item, the subject is • If there are IQ gains over time
asked to identify the missing
element that completes a that run at a rate of 0.3 IQ
• The tests were originally points per year and therefore,
developed by John C. Raven in
1936. over 50 years, the total gain is
James Robert Flynn
15 points.

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Flynn effect is attributable to:

• increased test sophistication and education (Tuddenham, 1948),
• “improvements in education reflecting more effective teaching” (Meadows,
Herrick, Feiler, & the ALSPAC Study Team, 2007, p.58),
• the greater complexity of more recent environments providing greater
cognitive stimulation (Williams, 1998),
What IQ means.
• greater cognitive stimulation from television and media (Greenfield, 1998)
and from computer games (Wolf, 2005),
• improvements in child rearing (Elley, 1969),
• more confident test taking attitudes (Brand, Freshwater, & Dockrell, 1989),
• the “individual multiplier” and the “social multiplier” (Dickens & Flynn,
2001) and
• “an enhanced real-world capacity to see the world through scientific
spectacles” (Flynn, 2007, p.42).

Lynn, R.,Who discovered the Flynn effect? A review of early studies of the secular increase of intelligence, Intelligence (2013),

Distribution of IQ Practical Significance of IQ

SD = 15 IQ Range Frequency Cumulative Frequency Typical Educability Typical Employment Options
Below 30 <0.00% <.001% below 30 Illiterate Unemployable. Institutionalized.
30 – 49 <0.099%? <0.01% below 50 1st-Grade to 3rd-Grade Simple, non-critical household
50 – 59 ~0.6%? 0.7% below 60 3rd-Grade to 6th-grade Very simple tasks, close
60 – 74 4.3%? 5% below 75 6th-Grade to 8th-Grade "Slow, simple, supervised."
75 – 88 20% 25% below 89 8th-Grade to 12th-Grade Assembler, food service, nurse's
0,13% 2,14% 13,59% 34,13% 34,13% 13,59% 2,14% 0,13% 89 – 99 25% 50% below 100 8th-Grade to 1-2 years of Clerk, teller, Walmart
100 – 110 25% 1 in 2 above 100 12th-Grade to College Degree Police officer, machinist, sales
55 70 85 100 115 130 145 IQ 111 – 120 15% 1 in 4 above 110 College to Master's Level Manager, teacher, accountant
121 – 126 5% 1 in 10 above 120 College to Non-Technical Ph. Manager, professor, accountant
No of People -3 -2 -1 0 +1 +2 +3 SD D.'s.
127 – 132 3% 1 in 20 above 126 Any Ph. D. Attorney, editor, executive.
133 – 137 1% 1 in 50 above 132 No limitations. Eminent professor, editor
138 – 149 0.9% 1 in 100 above 137 No limitations. Leading math, physics professor
150 – 159 0.09% 1 in 1,100 above 149 No limitations
160 – 176 0.009% 1 in 11,000 above 159 No limitations
177 – 200 0.00009% 1 in 1,000,000 above 176 No limitations
16 18

Threshold Level of Intelligence and

IQ and Occupations Occupational Success

A certain threshold level of intelligence is

a necessary but not sufficient condition
for success in most occupations.
Therefore a low IQ is much more predictive
than occupational level than is a high IQ. A
person with a high IQ may be anything from
an unskilled laborer to a Nobel Prize-winning
scientist. But low-IQ persons are not found at
all in the sciences or an in any of the learned
Mean, SD, Min., Max. Jensen, Arthur R. 1969. "How Much Can We Boost IQ
Data: Huang (2001) Cognitive Abilities and the Growth of High-IQ and Scholastic Achievement?" Harvard Educational
Occupations. Social Science Research 30, 529-551 Review 39:1-123.

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Lower G Reflects Lower Trainability Research on Project 100,000 men:

IQ 75 to 80 thus seems to define the threshold • Slow learners may require two to five times more
below which individuals risk being unemployable instructional time than more able learners.
in modern economies. • Training for such individuals must be made as
Individuals below IQ 80-83 are unlikely to benefit concrete, precise, structured, and job specific as
possible. Subject matter must not be
much from training in any formalized setting and will “decontextualized” (abstracted) from common,
later need constant supervision using even simple everyday experiences with which the men are
tools. familiar.
Even up to IQ 95, workers tend to need explicit • Successful training for low-aptitude men in some
teaching of most of what they need to know, and they cases may be achieved if the training content is
do not benefit much from “book learning” training. limited strictly to that which is relevant to a specific
Better training technology might improve success job, and no attempt is made to supply any underlying
theory or more general instruction which might be
rates for all groups, but it would not equalize them. useful to trainees of higher aptitude in fitting them for
rapid advancement to positions of greater
Gottfredson (1997) Why g Matters: The Complexity of Everyday Life responsibility.
Sticht et al., 1987
21 22

Focus on Specific Training, Not Broad

High-IQ, Self-trainable Individuals Education, When Time and Ability to Learn
Are Essential Are Limited
Employers understandably seek individuals with a greater capacity to The key problem with low IQ is not that it necessarily renders people incapable
learn independently and to work without close supervision, especially of mastering moderately complex tasks, because there is some evidence that,
with extensive time and focused practice, lower IQ individuals can master
for more complex jobs. Indeed, the job descriptions of managerial, tasks normally associated with higher IQ.
executive, and professional workers themselves suggest that high-IQ, • Rather, the practical problem is that it takes less intelligent individuals longer to
self-trainable individuals are essential. master tasks, especially more complex ones. Learning at a slower rate means
• Individuals who are able to “learn much on their own” and from the that such individuals often master far fewer tasks than their brighter compatriots,
even when those tasks are not particularly complex.
“typical college format” (IQs over 110) and to “gather and synthesize
• Optimizing learning among lower IQ individuals therefore requires narrowing the
information” and “infer information and conclusions from on-the-job material to be learned to the most essential and then presenting it in the most
situations” (IQs over 116). accessible way. With regard to content, this means emphasizing the basics.
• Roughly 30% of the working population above IQ 110 (25% of the Problem: Low-g learners require highly structured,
total adult population) would also be essential for training and detailed, concrete, and “contextualized” instruction that
supervising even the next lower third of the working population, omits no intermediate steps, but that such “complete”
which is “able to learn routines quickly” and with a “combination of
instruction is actually dysfunctional for high-g individuals.
written materials and actual job experience” (roughly IQ 100).
Gottfredson (1997) Why g Matters: The Complexity of Everyday Life
23 24

Differences in Intelligence Matter Life Outcomes by IQ Level

Much social policy has long been based on the false
presumption that there exist no stubborn or
consequential differences in mental capability. Worse
than merely fruitless, such policy has produced one
predictable failure and side effect after another, breeding
widespread cynicism and recrimination.
Educators routinely overpromise and schools,
accordingly, consistently disappoint. Welfare reformers
do not take seriously the possibility that today’s labor
market cannot or will not utilize all low-IQ individuals, no
matter how motivated they may be.
Virtually everyone is capable of living productive,
fulfilling lives in which they contribute to the general
welfare of their communities. However, protecting
and enhancing that potential requires us to
appreciate its greater vulnerability to disruption
among lower IQ individuals.

25 26

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Incidence of Various Social Phenomena Overall life chances at different

(percentages) in Five IQ Bands ranges of the IQ bell curve.
Social Phenomena 126+ 111–125 90–110 75–89 74– How overall life
College graduate 75 38 8 1 0 chances differ for
Below poverty line 1 4 7 14 26
individuals along
Unemployed one month in past year
4 6 8 11 14 different ranges of
the IQ continuum.
Work impaired by poor health (males) 13 21 37 45 62
High school dropout 0 1 6 26 64
Single mother 4 8 14 22 34
Long-term welfare mother 0 2 8 17 31
Long-term welfare recipient 7 10 14 20 28
Served time in prison 0 1 3 6 13
Has child with IQ below 80 1 3 6 16 30

Source: Herrnstein and Murray, 1994.

Gottfredson (1997) Why g Matters: The Complexity of Everyday Life 28

The Underclass The Cycle of Disadvantage in Britain

This subculture is typically located in impoverished inner-city districts and is Family Background Children
characterized by: Nondeprived Deprived*
• poor educational attainment; Number 5,962 148
• high levels of long-term unemployment; and Mental retardation—percent 0.5 8.1
• high rates of crime, drug addiction, welfare dependency, and single Children taken into foster care—percent 1.6 17.0
motherhood. Reading quotient 104 85
Low intelligence and psychopathic personality are the underlying Mathematics quotient 104 89
psychological determinants of this syndrome of social pathology. Illiterate—percent 0.6 11.4
Innumerate—percent 1.1 12.2
The underclass is perpetuated through the transmission of low intelligence Behavior problems—percent 1.4 2.8
and psychopathic personality, from generation to generation, from parents to * “deprived” (underclass) = unemployment of the father or male head of
children. This transmission takes place through genetic and environmental
processes. household, low income, poor quality housing, and five or more children
• The genetic processes consist of the inheritance of low intelligence and
psychopathic personality.
• The environmental processes consist of the poor childrearing techniques Essen and Wedge,1982
of parents with low intelligence and psychopathic personality and of the
social influence of the psychopathic subculture.

Computerisation enters more cognitive

Working and Workless
domains - this will become increasingly
Households, 2013
In April to June 2013:
• 17.1% of all households with at least one person aged
A decline in the demand for skill over
16-64 were workless, down from 17.9% in the same the past decade, even as the supply
period last year. This is the lowest percentage since
comparable records began in 1996. The total number of of workers with higher education has
workless households was 3.5 million.
• The number of people aged 16-64 in workless
continued to grow.
households fell to 4.9 million, the first time it has been
below 5 million since 2008.
• The number of children in workless households was 1.6 • high-skilled workers have moved
million, or 14% of all children. Of these, 65% were living
in single-parent households. down the occupational ladder,
• There were 297,000 households where no-one had ever taking on jobs traditionally
worked, down 43,000 on the year. Excluding student
households there were 224,000 households containing performed by low-skilled workers,
only people who have never worked, down 41,000 on
the year. • pushing low-skilled workers even

• The North East remained the area with the highest further down the occupational
percentage of its households workless, at 23%, with the
South East having the lowest at 13%. ladder and, to some extent, even
out of the labour force.
IQ / skills

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

IQ and Wealth of the


Richard Lynn Tatu Vanhanen

1930 - 1929 -

IQ in 8 world regions
Region IQ
Europe 98,3 ± 2,3
English-speaking 97,7 ± 2,9
Ex-communist 94,8 ± 3,1
Latin America 88,9 ± 4,5
Middle East 84,4 ± 3,8
Africa 69,9 ± 3,9
East Asia 106,2 ± 1,5
Rest of Asia 87,1 ± 3,8
All countries 89,8 ± 10,7

Lynn, Meisenberg (2010) National IQs calculated and validated for 108 nations

National IQ and Per Capita Income National IQ correlated with PPP-GNI-08

Country IQ GDP - per capita (PPP) 2005 Country IQ GDP - per capita (PPP) 2005
in the three groups of countries
Argentina 96 13 700 Mexico 88 10 000
Australia 99 32 500 Netherlands 100 30 300
Belgium 99 31 100 New Zealand 101 25 300
Pearson Spearman rank
Dependent variable N
Brazil 87 8 300 Nigeria 69 1 400 correlation correlation
Canada 97 33 900 Peru 76 6 000
China 98 6 800 Philippines 86 4 700 Total group of countries PPI-GNI per capita,
197 0,592 35,0% 0,709 50,3%
Congo (Brazzaville) 73 1 300 Poland 92 13 100 US dollars 2008
Congo (Zaire) 68 822 Portugal 91 19 000
Croatia 90 12 400 Qatar 78 28 300 Group of countries (inhabitants > 1 million)
Cuba 85 3 500 Romania 94 8 100
153 0,695 48,3% 0,787 61,9%
PPI-GNI per capita, US dollars 2008
Czech Republic 98 20 000 Russia 96 11 000
Denmark 97 34 800 Sierra Leone 67 800 Group of countries with measured national
Egypt 83 3 900 Singapore 103 28 600 156 0,602 36,2% 0,735 54,0%
IQs PPI-GNI per capita, US dollars 2008
Ethiopia 67 900 Slovakia 98 16 300
Finland 98 31 000 Slovenia 96 21 500
France 97 29 600 South Africa 72 12 200
Germany 103 30 100 Spain 96 25 600
Ghana 62 2 500 Sudan 72 2 100
Guinea 70 2 000 Switzerland 101 32 200
Hong Kong 107 34 000 Tanzania 74 700
India 82 3 400 Thailand 91 8 600
Iran 84 8 400 Turkey 90 8 400
Iraq 87 1 800 Uganda 73 1 800
Ireland 87 41 100 United Kingdom 100 30 100
Israel 90 25 000 United States 98 41 600
Italy 103 28 700 Uruguay 96 9 900
Japan 110 31 600 Zambia 75 900
Kenya 72 1 100 Zimbabwe 70 2 100
Korea, South 106 22 600

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

The results of regression analysis of PPP-GNI-08 Correlations between national IQ

on national IQ in the group of 197 countries and per capita income
A given increment in IQ, anywhere along the IQ
scale, results in a given percentage in GDP, rather
than a given dollar increase as linear fitting would
Exponential fitting of GDP to IQ is logically
meaningful as well as mathematically valid. It is
inherently reasonable that a given increment of IQ
should improve GDP by the same proportional
ratio, not the same number of dollars. An increase
of GDP from $500 to $600 is a much more
significant change than a linear increase from
$20,000 to $20,100. The same proportional change
would increase $20,000 to $24,000. These data tell
us that the influence of increasing IQ is a
proportional effect, not an absolute one (Dickerson,
Richard Lynn, Tatu Vanhanen (2012) National IQs: A review of their educational,
cognitive, economic, political, demographic, sociological, epidemiological,
geographic and climatic correlates 40

IQ and GDP (Gross Domestic Product) per capita IQ and GDP in Developing Countries
Data: Lynn & Vanhanen, 2002 Data: Lynn & Vanhanen, 2002

30000 R2 = 57% R2 = 51%

p < 0,01
p < 0,01
Real GDP per cap., 1998

Real GDP per cap., 1998

20000 20000
r = 0,76
N = 58
15000 15000

10000 10000

r = 0,71
5000 5000
N = 29

0 0
60 65 70 75 80 85 90 95 100 105 110 115 120 60 65 70 75 80 85 90 95 100 105 110 115 120

Argentina, Australia, Belgium, Brazil, Canada, China, Congo (Brazzaville), Congo (Zaire), Croatia, Cuba, Czech Republic, Denmark, Egypt, Ethiopia, Argentina, Brazil, China, Congo (Brazzaville), Congo (Zaire), Cuba, Egypt, Ethiopia, Ghana, Guinea, India, Iran, Iraq, Kenya,
Finland, France, Germany, Ghana, Guinea, Hong Kong, India, Iran, Iraq, Ireland, Israel, Italy, Japan, Kenya, Korea South, Malaysia, Mexico, Netherlands, Malaysia, Mexico, Nigeria, Peru, Philippines, Sierra Leone, South Africa, Sudan, Tanzania, Thailand, Turkey, Uganda,
New Zealand, Nigeria, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Sierra Leone, Singapore, Slovakia, Slovenia, South Africa, Spain,
Sudan, Switzerland, Tanzania, Thailand, Turkey, Uganda, United Kingdom, United States, Uruguay, Zambia, Zimbabwe
Uruguay, Zambia, Zimbabwe

IQ and GDP in Europe IQ and GDP in Developed Countries

Data: Lynn & Vanhanen, 2002 Data: Lynn & Vanhanen, 2002

30000 R2 = 22%
p = 0,05 30000

R2 = 11%
25000 p = 0,16
Real GDP per cap., 1998
Real GDP per cap., 1998

r = 0,46 r = 0,33
15000 N = 19 15000 N = 20

10000 10000


60 65 70 75 80 85 90 95 100 105 110 115 120
60 65 70 75 80 85 90 95 100 105 110 115 120

Belgium, Croatia, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Poland, Portugal,
Australia, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New
Romania, Russia, Slovakia, Slovenia, Spain, Switzerland, United Kingdom
Zealand, Portugal, Singapore, Spain, Switzerland, United Kingdom, United States

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Relationship of economic growth Correlations (Pearson’s r) of the Gini

from 1975 to 2005 with plausible predictors
N = 117 countries. Raw correlations (Pearson’s r) index with predictor variables
The results support the thesis of Lynn and Vanhanen r x Gini index
(2002, 2006) that the average IQ in the country is an What the present results do not
important determinant of national prosperity. Countries show are the mechanisms
with higher average IQ are not only wealthier, but through which high intelligence
there has been a trend – at least between 1975 and
promotes economic growth and
2005 – for national wealth to become more congruent
with IQ. The latter result is expected only if IQ is a reduces income inequality.
cause for wealth differences between countries, rather Future studies will have to show
than being only a consequence. whether the IQ effect on
Because the growth-promoting effect of IQ is stronger economic growth is mediated
than that of education, IQ rather than exposure to primarily by management skills,
formal education is the better measure of human labour productivity, technological
capital. The IQ effect is of moderate magnitude.
innovation, reduced birth rates,
The correlation between IQ and economic growth or other mechanisms
suggests that approximately 23% of the between-
country variation in economic growth can be
attributed to IQ differences.

Meisenberg (2012) National IQ and economic


45 Meisenberg (2012) National IQ and economic outcomes 46

Correlations between national IQ Correlations between national IQ and the three

indicators of poverty in various groups of
and other economic variables countries
Economic Growth Variables N countries r x IQ Reference Dependent variable N Pearson Spearman
1 Economic freedom 59 0,76 Meisenberg, 2004
correlation rank
2 Economic freedom 123 0,61 Lynn & Vanhanen, 2006
3 Economic freedom, 1960-2000 165 0,52 Meisenberg, 2011 correlation
4 Economic freedom 126 0,53 Meisenberg, 2011 Total group of countries
5 Economic freedom 82 0,56 Lynn & Meisenberg, 2011
Population below $1.25 a day 101 -0,667 -0,713
6 Incomes in US 59 0,47 Jones & Schneider, 2010
7 Employment: % Agriculture 81 -0,71 Barber, 2005 Population below $2 a day 101 -0,710 -0,746
8 Employment: % Agriculture 170 -0,70 Meisenberg, 2009 MPI-00-08 100 -0,729 -0,772
9 Investment: GDP 98 0,61 Ram, 2007 Group of countries (inhabitants > 1 million)
10 Income equality: Gini index 51 -0,60 Meisenberg, 2004
Population below $1.25 a day 97 -0,673 -0,720
11 Income inequality: Gini index 146 -0,54 Lynn & Vanhanen, 2006
12 Income inequality: Gini index 52 -0,52 Lynn et al., 2007 Population below $2 a day 97 -0,717 -0,756
13 Income inequality: Gini index 148 -0,51 Rindermann, 2008a MPI-00-08 93 -0,743 -0,784
14 Income inequality: Gini index 127 -0,51 Kanazawa, 2009
Group of countries with measured national IQs
15 Income inequality: Gini index 126 -0,58 Meisenberg, 2011
16 Poverty: % 96 -0,63 Lynn & Vanhanen, 2006 Population below $1.25 a day 88 -0,658 -0,693
17 Savings 129 0,48 Jones & Podemska, 2010 Population below $2 a day 88 -0,709 -0,742
18 Self-employment 117 0,49 Vinogradov& Kolvereid, 2010 MPI-00-08 80 -0,742 -0,769
19 Undernourishment 124 -0,50 Lynn & Vanhanen, 2006
MPI-00-08 = UNDP Multidimensional Poverty Index
Lynn, Vanhanen (2012) INTELLIGENCE - A Unifying Construct for the Social Sciences

National IQ and R&D

The relationship between
national IQ and R&D is
extremely curvilinear. The
value of R&D remains low
for almost all countries
below the national IQ level
of 90 and also for some
countries above this
national IQ level, but it has
risen steeply in most
countries above this IQ
It seems to imply that a
national IQ level of 90 is
needed to extend
research activities

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Eesti abielupaar pälvis Vantaa aasta ettevõtja tiitli

Emigration and Immigration Sander Silm, 24. november 2015, 09:22

Recipient Brain Drain - a slang term for a Eestist pärit abielupaar Monika ja Veiko Põldkivi pälvisid Soomes Vantaas
aasta ettevõtja tiitli.
country significant emigration of educated Monika ja Veiko Põldkivile kuulub 2005. aastal asutatud puhastusteenuseid
osutab firma Sivex OY, mis pakub praegu tööd 30 puhastustöötajale, kes
or talented individuals. eranditult kõik on Soome sisserännanud.
A brain drain can result from turmoil within a nation, Nii töötab firmas inimesi Nepalist, Ukrainast, Venemaalt, Vietnamist ja Eestist
from there being better professional opportunities in ning ainult ühel eestlasel on Soome kodakondsus. Põhjus, mis soomlasi nende
firmas ei tööta, on lihtne. "Soomes pole piisavalt tööjõudu saadaval ja võib-olla
High other countries or from people seeking a better on takistuseks ka see, et firmaomanikud on eestlased. Küll tulevad aga meie
standard of living. firmasse praktikale järgmise aasta alguses mõned soomlased," rääkis Monika
Donor Brain drains cause countries to lose valuable Põldkivi.
Monika ettevõtjakarjäär sai Soomes alguse 90ndate lõpus. 1997. aastal töötas
country professionals. The term is usually used to describe the

ta Soomes aasta lapsehoidjana, kuid kuna aasta hiljem jõustus Soomes

departure of doctors, scientists, engineers or financial seadusemuudatus, mille kohaselt said pered, kes tellisid koristusteenust,
professionals. When these people leave, their country tulumaksusoodustust, siis hakkas ta füüsiliselt isikust ettevõtjana pakkuma oma
is harmed in two ways: teenust.
High Kuid kuna töömahud kasvasid sedavõrd suureks, siis lõi Monika koos ehitusäris
• First, expertise is lost with each emigrant, tegutseva abikaasaga osaühingu Sivex OY. Firma põhikliendid on nii
IQ Low diminishing the supply of that profession. majapidamised kui firmad ning Uudenmaa piirkonnas tegutseva ettevõte käive
IQ • Second, the country's economy is harmed as ulatub 1,2 miljoni euroni.
Küsimusele, kas abielupaar pole mõelnud äritegemisele ka Eestis, vastas
each professional represents surplus spending Monika jaatavalt. "Koristusturg on Eestis meie jaoks liiga väike, kuid me
units. arendame ühte toodet ja jaanuaris hakkame seda füüsiliselt ka müüma. See
Low tuleb müüki ka Eestis, sest meie turuuuringud näitavad, et ka Eestis oleks
Professionals often earn large salaries, so their
IQ ????? departure removes significant consumer spending
sellele tootele turgu," rääkis ta.

from the country.
Investopedia, 2014

World News | Tue Sep 13, 2016 | 1:06pm EDT

Top German companies say refugees not ready for
job market
Labour migration decisions
By Georgina Prodhan | FRANKFURT • Important determinants of a move: differences in regional disparities in
prosperity (earnings, unemployment rates, cost of living, public goods
Germany's blue-chip companies will have to explain to Chancellor Angela Merkel on Wednesday and public transfers).
why they have managed to hire fewer than 100 refugees after around a million arrived in the
country last year. • The decision to move is affected by the costs of moving (monetary +
Merkel, fighting for her political life over her open-door policy, has summoned the bosses of some of psychological).
Germany's biggest companies to Berlin to account for their lack of action and exchange ideas about
how they can do better. • According to the human capital model:
Many of the companies say a lack of German-language skills, the inability of most refugees to prove • The likelihood of migration decreases with age (smaller expected lifetime
any qualifications, and uncertainty about their permission to stay in the country mean there is little
they can do in the short term. gain from moving for older people).
A survey by Reuters of the 30 companies in Germany's DAX stock market index found they could • Individuals with higher education exhibit a higher migration probability
point to just 63 refugee hires in total. Several of the 26 firms who responded said they considered it (higher education reduces the risks of migration through a higher ability
discriminatory to ask about applicants' migration history, so they did not know whether they employed
refugees or how many. to collect and process information).
Of the 63 hires, 50 are employed by Deutsche Post DHL, which said it applied a "pragmatic • Risks and costs of movements rise with distance (information about
approach" and deployed the refugees to sort and deliver letters and parcels. labour market conditions is expected to be better for closer locations).
"Given that around 80 percent of asylum seekers are not highly qualified and may not yet have a
high level of German proficiency, we have primarily offered jobs that do not require technical skills or • Family ties (most migrants move within the context of ethnic networks,
a considerable amount of interaction in German," a spokesman said by email. resulting in the formation of ethnic clusters in the host country).
What is clear is that early optimism that the wave of migrants could boost economic growth and help
ease a skills shortage in Germany - where the working-age population is projected to shrink by 6 • The existence of network and chain migration (lower risks and costs,
million people by 2030 - is evaporating. accelerates movement).
Constant, A., Zimmermann, K.F. (2005) Immigrant Performance and Selective Immigration
Policy - A European Perspective

EU nationals with a job in the UK increase UK - Top eight reasons for employing
by almost 20% in 12 months migrants (%)
The latest figures suggest many of the EU migrants who come to Britain end up
employed anyway. EU migrants Non-EU migrants
The Office for National Statistics said that between July and September, there were
31.3million people in work, up 1.4 per cent on the same period last year.
Mr Cameron today boasted that record levels of employment rate show his 'economic
plan is delivering security and opportunity for Britain's working people'.
But a detailed breakdown of the nationality of workers in the UK reveals most of the
increase is accounted for by rising employment among EU migrants.
Among UK nationals, the figure was up 0.4 per cent or 122,000 people, to 28.09million.
But among EU nationals, the number jumped by 324,000 to 2.03million, a dramatic rise
of 19.1 per cent. It is the largest jump since data was first kept in 1997.
Although more than half of them are from Eastern Europe, others have escaped the
stagnant economies of France, Italy and Spain.
The number of workers from Poland and seven other former Eastern Bloc countries that
joined the EU in 2004 reached 975,000, an annual rise of 16 per cent. Nationality of new recruits (%)
Another 201,000 Romanian and Bulgarian nationals, who have had full freedom of
movement and access to work since January 2014, are also working here, up 20 per
However, the sharpest rise was among countries from the 14 ‘old’ EU states such as
Spain, Italy and Greece, which saw an increase of 155,000, or 23 per cent.
In 2004 when Tony Blair threw open the UK’s doors by axing employment restrictions
just 500,000 EU nationals had jobs here.

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Today technological change requires

National economic benefits from a education both for the innovator and
single person through gross national the worker. And here we see the
product importance of economic institutions
(US$ in a year, prices of year 2005) that create a level playing field. The
United States could produce, or attract
Change in national GDP, + one person with IQ from foreign lands, the likes of Bill
Gates, Steve Jobs, Sergey Brin, Larry
85-100 100-115 115-130 130-145 >145 Page, and Jeff Bezos, and the
US -8 430 11 104 30 638 50 171 63 194 hundreds of scientists who made
fundamental discoveries in information
RU -2 264 2 981 8 226 13 471 16 968 technology, nuclear power, biotech,
and other fields upon which these
EST -3 426 4 513 12 451 20 390 25 682
entrepreneurs built their businesses.

GNP = 541,05 x IQ – 36884 Acemoglu, Robinson, 2012

(Basen on data: Lynn & Vanhanen, 2002)


by Indicator, Type and level of education and Year

Discrimination of males

Discrimination of females

Data: Statistics Estonia, 2014 Statistics Estonia, 2015

Participation rates in tertiary education (ISCED 5 and 6) by age and by sex, 2009


Between 18 and 39 years
old, participation rates for
women are usually higher
than those for men, a
difference that is especially
marked in the Baltic
States, Poland, Slovenia
and Croatia; whereas in
Germany, France, the
Netherlands, Austria, the
United Kingdom,
Switzerland and Turkey
there is not much
The number of male and female students at specific
ages or in specific age groups are divided by the
numbers of males and females at the corresponding
age or in the corresponding age groups in the total
population. All (full-time and part-time) students at
ISCED levels 5 and 6 are included.
Statistics Estonia, 2015 EuroStat (2012) Key Data on Education in Europe 2012

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Trends in the index of women enrolled in tertiary education compared

with men (ISCED 5 and 6), 2000-2009 Gender gap at university has grown even wider: Women
In Germany, Greece now 35% more likely to start a degree course than men
By Eleanor Harding, Education Correspondent For The Daily Mail, 17 December 2015
(data from 2008), the
Netherlands and • Number of students entering university has increased to a
record high
Switzerland, the • Number of women rose by 5% on last year, but men rose by
distribution of women only 2%
and men is rather • Young women are now 35% more likely to start a degree course
than men
Women are shooting further ahead of men in gaining entry to university, with the gender
In all other countries, gap wider than ever, figures reveal.
University admissions figures released today show young women are now 35 per cent
there were more than more likely to start a degree course than men – rising to 50 per cent among those from
poor backgrounds –with tens of thousands of men 'missing' from higher education.
115 women for every The total number of students entering university has increased to a record high, but while
100 men enrolled in the number of women rose by 5 per cent on last year, the number of men rose by only 2
per cent.
tertiary education. Gender gap: Young women are now 35 per cent more likely to start a degree course than
men (file image)
Of the 463,715 UK candidates gaining a place this summer, only around 201,960 – or
This highest women 43.5 per cent – were male. Among 18-year-olds, 26.2 per cent of men started university
participation can be seen compared with 35.4 per cent of women.
Mark Corver, Ucas director of analysis and research, said: 'We have seen quite a
in Estonia, Latvia, pronounced widening of the gap between men and women.
'Young women are now 35 per cent more likely to enter higher education than men. This
Slovakia, Sweden, is the largest proportional gap that we have ever measured.'
He added that the difference equates to 36,000 fewer young men starting a degree
Iceland and Norway course than if the entry rates were the same.
where more than 150 Ucas chief Mary Curnock Cook said: 'We have previously highlighted the unacceptably
large and widening gap between entry rates for men and women and this year shows
women are enrolled for young men, and especially young white men, falling even further behind.'
The body also pointed out the differences in admission rates between ethnic groups, with
every 100 men. the rate for white students at 28 per cent – compared with 41 per cent for Asian students
and 58 per cent for Chinese students.

Proportion of tertiary education qualifications (ISCED5 and 6) awarded

to women by field of education/professional training, 2009

In line with the trend

Global Ph.D.s Gender Gap (2010)
over recent years,
women clearly
outnumber men in most
academic fields
including in education
and training where
women make up almost
80 % of graduates; in
health and welfare the
figure is 76 %; in the
humanities, 69 %; and
in social sciences, law
and business, 62 %. To
a lesser extent, more
women (52 %) than men
graduate in the services
area. Education and
training is, however, the
field where the
predominance of
women continues to be
strongest, peaking at 90
% or over in Estonia,
Italy, Romania and

A - Education and training

B - Humanities and arts
C - Social sciences, business
and law
D - Science, mathematics and
E - Engineering, manufacturing
and construction
F - Agriculture and veterinary
G - Health and welfare
H - Services

Global Ph.D.s Gender Gap (2010)
Global Ph.D.s Gender Gap (2010)

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Global Ph.D.s Gender Gap (2010)
Global Ph.D.s Gender Gap (2010)

Global Ph.D.s Gender Gap (2010)
Global Ph.D.s Gender Gap (2010)

Global Ph.D.s Gender Gap (2010)

School success of girls

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

IQs of the same boys and girls tested at the Sex differences on the Progressive
ages of 7, 11 and 16 years Matrices
• When sex differences are examined in relation
The intelligence of to age, girls perform better at the ages of 12–
boys and girls 15 and boys perform better from the age of 16
matures at years onwards.
different rates, and • Female advantage over the years 12–15 is 3.8
IQ points.
that the earlier
maturation of girls • The male advantage of the 16–18 year olds
averages 1.6 IQ points.
gives them an IQ
• The higher means obtained by girls over the
advantage at the age range 12–15 is most plausibly explained
ages of 7 and 11 by the faster maturation of girls in early
years, while the adolescence.
later maturation of • A referee has commented that the sex
boys gives them difference is ‘‘so small as to have no
an IQ advantage at practical value’’. We do not agree. The male
the age of 16 advantage of 2.4 IQ points among adults
years. would produce 140 males with IQs above
130 for every 100 females and
approximately twice as many males with
Richard Lynn, Juri Allik, Helle Pullmann, Kaia Laidra (2004) Sex IQs above 200. This may provide part of the
differences on the progressive matrices among adolescents: explanation for the preponderance of men
Lynn, Kanazawa (2011) A longitudinal study of sex differences in intelligence at ages 7, 11 and some data from Estonia. in occupations requiring high levels of
16 years

IQ – male/female ratio Strong Evidence for Gender

Differences in Risk Taking
Are men more willing to take financial risks
than women? The answer to this question
has immediate relevance for many
economic issues. We assemble the data
from 15 sets of experiments with one
simple underlying investment game. Most
of these experiments were not designed to
investigate gender differences and were
conducted by different researchers in
different countries, with different
instructions, durations, payments, subject
pools, etc. The fact that all data come from
the same basic investment game allows us
to test the robustness of the findings. We
find a very consistent result that women
invest less, and thus appear to be more
financially risk averse than men.

Gary Charnessa, Uri Gneezy (2012) Strong Evidence for Gender

Among adults, the male advantage is 0.33d equivalent to 5 IQ points (Lynn, Irwin, 2004). Differences in Risk Taking. Journal of Economic Behavior &
Organization 83 : 50– 58

Mind the (gender) gap... it's still here Homogamy problem

Unlike in mathematics, engineering, and other areas of Homogamy (sociology), marriage between
science, the number of undergraduate female biology majors
exceeds that of male biology majors. To determine whether individuals who are, in some culturally
gender disparities still exist, however, Eddy et al. looked at important way, similar to each other
whole-class discussion participation and academic
achievement in 23 introductory undergraduate biology Miss Master Miss Master Mister Master
classes at a large university. Despite being the numerical
majority at 60%, females responded to instructor-posed
questions less than 40% of the time. Moreover, females
scored lower on exams than their male counterparts with a
similar grade point average. These results show that closing
the gender gap in science education may require more than 33% 33% 33%
just recruitment alone.

CBE Life Sci. Educ. 13, 478 (2014).

Probability for educational homogamy for women with master degree = 50%

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Sex Ratio and Women’s Career Choice: Does a Scarcity of Female professionals in the United
Men Lead Women to Choose Briefcase Over Baby?
States in the 1990s
Although the ratio of males to females in a • 49 percent of those over 40 were
population is known to influence behavior in childless, compared with only 19 percent
nonhuman animals, little is known about how sex of comparable male executives.
ratio influences human behavior. We propose that
sex ratio affects women’s family planning and • Only 57 percent of these women were
career choices. Using both historical data and married, compared to 83 percent of the
experiments, we examined how sex ratio men.
influences women’s career aspirations. Findings
showed that a scarcity of men led women to
• Marriage became more difficult as the
seek high-paying careers and to delay starting women 's status rose. As a rule, they
a family. This effect was driven by how sex ratio either married young or not at all. Only 10
altered the mating market, not just the job market. percent of the women were first married
Sex ratios involving a scarcity of men led after age 30, only 1 percent after age 35.
women to seek lucrative careers because of
the difficulty women have in finding an
• Interviews indicated that few men were
investing, long-term mate under such interested in marrying, or even courting,
circumstances. Accordingly, this low-male sex high status women.
ratio produced the strongest desire for lucrative
careers in women who are least able to secure a
Operational sex ratio - the ratio of adult unmarried men
mate. These findings demonstrate that sex ratio
Hewlett, S. A. (2002). Creating a life:
to adult unmarried women between the ages of 15 and
has far-reaching effects in humans, including
Professional women and the quest for
44 within a population.
whether women choose briefcase over baby.
children. Talk Miramax, New York.
Durante, et al., 2012

geo\time 2006
Iceland 64,3

Share of women Latvia

Is the non-homogamic
Lithuania 59,9
marriage possible?
among tertiary Norway
58,5 Plot
Slovenia 58,4

students; Women Slovakia

Theresa Osborne, a former reporter, works as a
researcher for the Chicago Tribune. On a trip to Cape
Cod, she finds a mysterious, intriguing love letter in a
bottle in the sand, addressed from Garret to Catherine.
among students in United States
United Kingdom
She is fascinated by it and comes into possession of two
more letters by the same person, eventually tracking
down the man who wrote them, Garret Blake. He

Italy 56,9
Macedonia, the former Yugoslav
refurbished a boat called Happenstence with his wife
Republic of 56,7
before her death and he lives quietly on the Outer Banks
Romania 55,4
of North Carolina near his father, Dodge.
France 55,3 Theresa and Garret become better acquainted, but she
Portugal 55,2 does not reveal her knowledge of the love letters. Along
EU (27 countries) 55,1 with the literal distance between them — they live
EU (25 countries) 55,1 hundreds of miles apart — there is another problem:
Ireland 55,1 Garret cannot quite forgive Catherine for dying and
Belgium 54,7 leaving him.
Croatia 54,1 Theresa's career flourishes as the romantic tale of the
Spain 53,9 "messages in a bottle" is told in print, without naming
Finland 53,9 names. Garret makes a trip to Chicago to visit Theresa
Czech Republic 53,8 and her young son. Their new love grows, until one day
Austria 53,8 Garret finds his letters in a drawer in Theresa's
Euro area (15 countries) 53,7 apartment. Garret angrily confronts Theresa and, after a
Bulgaria 53,5 night of explanations, he goes home by himself.
Luxembourg 51,6 A year later, Dodge tracks down Theresa. He informs her
Netherlands 51,1 that his son Garret has died at sea in a storm while
Greece 50,9 attempting to rescue someone else. A bottle with a
Cyprus 50,9 message inside was found on his boat. Theresa realizes
Germany 49,7 that it was written the night before Garrett's last sailing. In
Switzerland 46,9 it, he apologizes to Catherine and says that in Theresa
Photo: Vice, September 26, 2015 Japan 45,7 he has found a new love, a love he must fight for. Turkey 42,4
Liechtenstein 30,3

Average Number of Children Ever Born to Married Women Number of Children of Women Aged 35-44 Shown
and Men Analyzed by Education, Standardized for Duration
of Marriage in Relation to Their Years of Education and IQs
Czechoslovakia, Years of Education IQ Number of Children
England, Finland,
16+ 111 1.6
France, Hungary, 13-15 103 1.9
Yugoslavia 12 95 2.0
1966 - 1972 0-11 81 2.6
Average 98 2.0
Source: Herrnstein and Murray (1994).

The average baby born in America in 1990 came from a

mother with slightly below average intelligence. The result
confirms the first estimate that fertility in the United States
around the year 1990 was dysgenic.

Source: Nohara-Atoh (1980)

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

Fitness Reproductive strategy

1. a set of attributes that people have or • r-strategy: A set of reproductive
are able to achieve relating to their
ability to perform physical work and to characteristics that tends to
carry out daily tasks with vigor and maximize the potential rate of
alertness, without undue fatigue, and population increase at the expense
with ample energy to enjoy leisure
pursuits. of intensive nurture of young and
efficient resource utilization.
2. in biology, the extent to which an • K-strategy: A set of reproductive
organism or population is able to
produce viable offspring in a given characteristics that tends to
environment or ecological niche, which maximize use of resources by
is a measure of that organism’s or emphasizing intensive nurture and a
population’s adaptation to that
environment. slow reproductive rate, with
• Darwinian fitness the relative success of concomitant increase in complexity
a particular organism or genotype in of nervous system and larger brain.
producing viable offspring, which is
determined by natural selection.

Total fertility rate, 1960-2011

National IQ and annual population

The decline of the world's IQ growth (%)
Dysgenic fertility means that there is a negative correlation between
intelligence and number of children. Its presence during the last
century has been demonstrated in several countries. We show here
that there is dysgenic fertility in the world population quantified by a
correlation of −0.73 between IQ and fertility across nations. It is
estimated that the effect of this has been a decline in the world's
genotypic IQ of 0.86 IQ points for the years 1950–2000. A further
decline of 1.28 IQ points in the world's genotypic IQ is projected for
the years 2000–2050. In the period 1950–2000 this decline has been
compensated for by a rise in phenotypic intelligence known as the
Flynn Effect, but recent studies in four economically developed
countries have found that this has now ceased or gone into reverse.
It seems probable that this “negative Flynn Effect” will spread to
economically developing countries and the whole world will move into
a period of declining genotypic and phenotypic intelligence. It is
possible that “the new eugenics” of biotechnology may evolve to
counteract dysgenic fertility.
Lynn, Harvey, 2008

© Compiled by Mart Murdvee, 2014-16

IQ: Economic Resource

What to do: References

• Negative Eugenics: • Positive Eugenics: • Human Biotechnology: • Lynn (2001) Eugenics - A Reassessment Human Evolution, Behavior, and Intelligence. Greenwood Publishing
– Sterilization – Financial incentives to – Artificial insemination • Gottfredson (1997) Why g Matters: The Complexity of Everyday Life. Intelligence, (1) 79- 132
have children by donor • Lynn, Vanhanen (2002) Intelligence and the Wealth and Poverty of Nations. Westport, CT: Praeger.
– Incentives for women • Lynn, Vanhanen (2012) National IQs: A review of their educational, cognitive, economic, political, demographic,
on welfare to use – Selective incentives for – Egg donation sociological, epidemiological, geographic and climatic correlates. Intelligence.
contraception childbearing • Whetzel, McDaniel (2005) Prediction of national wealth. Intelligence 34; 449–458
– Prenatal diagnosis of
• Meisenberg (2012) National IQ and economic outcomes. Personality and Individual Differences 53; 103–107
– Payments for – Taxation of the genetic disorders • Lynn, Kanazawa (2011) A longitudinal study of sex differences in intelligence at ages 7, 11 and 16 years.
sterilization childless – Pregnancy Personality and Individual Differences 51; 321–324.
• Richard Lynn, Juri Allik, Helle Pullmann, Kaia Laidra (2004) Sex differences on the progressive matrices among
– Curtailment of benefits – Ethical obligations of terminations of adolescents: some data from Estonia. Personality and Individual Differences 36; 1249–1255
to welfare mothers the elite defective fetuses • Richard Lynn, John Harvey (2008). The decline of the world's IQ. Intelligence 36: 112–120
• John Beddington, Cary L. Cooper, John Field, Usha Goswami, Felicia A. Huppert, Rachel Jenkins, Hannah S.
– Sterilization of the – Eugenic immigration – Embryo selection Jones, Tom B. L. Kirkwood, Barbara J. Sahakian and Sandy M. Thomas (2008). The mental wealth of nations.
mentally retarded policy – Genetic engineering Nature, Vol 455/23; 1057-1060
• Gary Charnessa, Uri Gneezy (2012) Strong Evidence for Gender Differences in Risk Taking. Journal of
– Sterilization of female – Gene therapy Economic Behavior & Organization 83 : 50– 58
criminals • Kristina M. Durante, Vladas Griskevicius, Jeffry A. Simpson, Stephanie M. Cantu and Joshua M. Tybur (2012)
– Cloning Sex Ratio and Women’s Career Choice: Does a Scarcity of Men Lead Women to Choose Briefcase over Baby?”
– Sterilization of male with. Journal of Personality and Social Psychology, Vol. 1, No. 103, pp. 121-134.

Lynn, 2001

© Compiled by Mart Murdvee, 2014-16