Reference
Keuschnigg, M., van de Rijt, A., & Bol, T. (2023). The plateauing of cognitive ability among top earners. European Sociological Review, jcac076. https://doi.org/10.1093/esr/jcac076
Review
In their article "The plateauing of cognitive ability among top earners," Keuschnigg, van de Rijt, and Bol (2023) challenge the notion that the highest-paying jobs with the most prestige are occupied by individuals with exceptional cognitive ability. The authors hypothesize that among the relatively successful, average ability is concave in income and prestige. This study is significant as it offers a novel perspective on the relationship between cognitive ability and job success, as well as the role of social background and cumulative advantage in determining high occupational success.
Using Swedish register data containing measures of cognitive ability and labor-market success for 59,000 men who took a compulsory military conscription test, the authors find a strong overall relationship between cognitive ability and wage. However, they also reveal a striking plateau of cognitive ability above €60,000 per year, at a modest level of +1 standard deviation. Interestingly, the top 1% of earners score slightly worse on cognitive ability than those in the income strata right below them. The authors observe a similar but less pronounced plateauing of ability at high occupational prestige.
This article contributes to the existing literature on cognitive ability and job success by highlighting the plateauing of cognitive ability among top earners. The findings suggest that factors such as social background and cumulative advantage may play a more significant role in determining high occupational success than previously thought. As a result, the article provides valuable insights for policymakers and researchers interested in understanding the mechanisms behind occupational success and the limitations of cognitive ability as a determinant of success in the labor market.
