Showing posts with label top earners. Show all posts
Showing posts with label top earners. Show all posts

Sunday, January 29, 2023

[Article Review] The Interesting Plateau of Cognitive Ability Among Top Earners

The Plateauing of Cognitive Ability Among Top Earners

This review focuses on the work of Keuschnigg, van de Rijt, and Bol (2023), who explore the relationship between cognitive ability and success in high-income and high-prestige occupations. Their findings challenge the assumption that the highest earners consistently display exceptional cognitive ability, offering new insights into how social factors and cumulative advantages influence professional achievement.

Background

Using a comprehensive dataset of 59,000 Swedish men who underwent military conscription testing, the authors examine how cognitive ability correlates with income and occupational prestige. The study builds on existing research by introducing a novel perspective: while cognitive ability and income are strongly linked overall, this relationship diminishes among top earners.

Key Insights

  • Cognitive Ability and Income: While higher cognitive ability generally predicts higher earnings, the study identifies a plateau effect. Above €60,000 per year, cognitive ability levels off, averaging just +1 standard deviation, with the top 1% of earners scoring slightly lower than those earning slightly less.
  • Cognitive Ability and Prestige: A similar but less pronounced plateau is observed in high-prestige occupations, suggesting that factors beyond cognitive ability contribute to occupational success.
  • Role of Social Factors: The findings highlight the importance of social background and cumulative advantages, which may outweigh cognitive ability in determining access to top positions.

Significance

This study adds depth to the conversation around cognitive ability and success, emphasizing that intelligence alone does not determine professional achievement. Social influences and systemic factors, such as networking opportunities or socio-economic background, play a significant role. These findings are particularly relevant for policymakers and researchers working to create equitable professional environments and access to high-paying roles.

Future Directions

Further research could expand on this study by examining additional demographic groups or exploring how different industries contribute to the plateauing effect. Understanding how social background interacts with individual attributes could inform interventions aimed at reducing barriers to success.

Conclusion

Keuschnigg, van de Rijt, and Bol (2023) provide valuable insights into the nuanced relationship between cognitive ability and occupational success. Their work underscores the complex interplay of individual skills and social factors in shaping outcomes, offering a foundation for ongoing research and policy discussions.

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