Data set I have used for my research is from Wooldridge. The sample I am going to use is restricted to individuals who have answered all the elements in survey with 722 observations. Reason for picking up this data set is that it includes the ability measures IQ and KWW, which are the scores from two intelligence tests. The IQ scores were collected as part of a survey of the respondents ' schools. The KWW test examines respondents ' knowledge about the labour market, covering the duties, educational attainment, and relative earnings of ten occupations. Since KWW cannot be used as an independent of education thus it is mostly used as an instrument in this paper. I have performed several regressions using repeated observations of same …show more content…
This simple equation has drawn many research, studies and debate over the years. Much of the controversy focuses on the issue of variable bias. This simple equation violates one of the basic assumption of E(|S) ≠ 0. This leads to two major problems in equation above firstly in job market education has been regarded only signal to higher ability, which leads to more educated individual paid more; this might be because of the correlation of education and wage results from probably individual ability which affects both the variables. Although education does not increase one’s effectiveness but still much of research in past has focused on separating effect of education and unobserved ability by introducing plausible ability variables. Second major problem with equation above is that education is a choice variable, desired level of education depends upon number of other factors for all individuals, which leads to education being an endogenous variable.
Much has been written and researched on how to resolve problem faced above I will not focus on these issues but rather divert focus on the topic not discussed in much detail so far on what really determines ability per se. From last few decades IQ and KWW are the two important measures used to estimate unobserved ability, thus my focus will lie on effect of IQ level on education and can it be replaced with ability variable.
The Model
To start my
The main hypothesis of this article is: Among those who are ages 25-62 and working full time, those with degrees in higher education will more than over their lifetime than those without some type of college degree. The author states on the first page “A college degree is key to economic opportunity, conferring substantially higher earnings on those with credentials than those without”. There are other sub-hypothesis tested for example, how race, gender and occupation can have affects on lifetime earning, but for the sake of this paper we are going to focus on the main hypothesis. In regards to a theory, the authors did not make it very clear what the theory was because they did not explicitly say why having a college degree would increase your earnings over a lifetime. This research is inductive
When one speaks of intelligence or how bright another person is, the often quoted figure is the IQ or intelligence quotient. It is the most often used standard of how smart a person is. This paper shall look at what intelligence tests measure, how the IQ tests measure intelligence and interrogate their history. It shall then apply the tests to school policy and hence evaluate their validity.
Most scientists agree that genes have some influence over general intelligence and special aptitudes in such activities as athletics, mathematics, music, and science. But genes are not the only factor involved in producing these characteristics.
Knowledge isn’t all about what people know or how well they are in school. IQ tests test the intelligence of the person; however they test the pure thinking capacity rather than what people know. This means that intelligence comes from the entire cognitive thinking ability and not what they
Suppressing a person’s intellectual abilities by throwing a test at them and telling them to pass it does not justify as being a way to distinguish who is well-educated and who is not. A person’s ability to think effectively, think rationally about certain situations, the ability to search for alternatives and lastly, the ability to think inductively and/or deductively are attributes that determines if a person is
Since the development of the intelligence quotient, schools in every part of the world have been using the IQ test to categorize millions of students into three groups. These three groups, which are the gifted, the average, and the retarded, are falsifications that perpetuate in our world culture and cause many gifted students to be deemed retarded and vice a versa. Why then is the IQ test so heavily relied on in our school systems? For schools the answer is simple, an I.Q. test is a reliable predictor of a students later performance in academics. This answer is relatively true, but where the I.Q. test falls extremely short is with testing the multiple
One of the first things a child is taught while growing up is the well-known cliché, practice makes perfect. This phrase has been the basis for trial and error situations time and time again, where if it doesn’t work the first time then keep trying. In Outliers: The Story of Success, Malcolm Gladwell leaves the audience with a memorable observation, the 10,000 hour rule. The basis of the 10,000 hour rule is that an area of interest requires 10,000 hours of practice in order to become an expert. Although this may be true in some situations, how can someone practice something they are unable to do? Natural talent and ability are crucial characteristics in order to become an expert in any area. This phenomena highly lends itself to the observations made about intelligence and genetics. The main misunderstanding when considering whether this argument is fundamentally nature or nurture is the difference between intelligence and education. Many consider education to be exactly equal to intelligence, which is the basis for the believing that working hard will essentially result in intelligence. Intelligence is considered as “a very general mental capability that, among other things, involved the ability to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly, and learn from experience” (Colangelo19-39.) Qualities that make up the realm of intelligence are things that people are simply born with and cannot easily be taught and trained. One may be able to work twice as hard as the next person and equalize their achievements, but the essential difference at work is the way the mind process information and the difference between intelligence and education. Although some consider intelligence to be an environmentally based attribute, they fail to understand the true meaning of
Intelligence by definition is “the ability to acquire and apply knowledge and skills” (Oxford Dictionary, 2014). However, many psychologists argue that there is no standard definition of ‘intelligence’, and there have been many different theories over time as psychologists try to find better ways to define this concept (Boundless 2013). While some believe in a single, general intelligence, others believe that intelligence involves multiple abilities and skills. Another largely debated concept is whether intelligence is genetically determined and fixed, or whether is it open to change, through learning and environmental influence. This is commonly known as the nature vs. nurture debate.
According to Gary Becker, the labor market is placing a greater emphasis on education and dispensing rapidly rising rewards to those who stay in school the longest. Numerous studies have shown that the greater the education, the greater the medium income (Bureau of Labor). People who want to earn more money have the incentive to pursue a higher level of education. Between 1915 and 1950, the demand for education was lower because there were fewer high paying jobs. It was not until 1950 that number of people who returned to college rose, and after 1980 this number skyrocketed (Cowen). The new increase in returning college students called for an increase in supply and demand. As the demand for an education level beyond high school increased, so did the amount of high paying jobs. However, some individuals such as Charles Murray, co author of “The Bell Curve,” argue that only a certain amount of citizens are educable at a high level and it is these people who receive the benefits of a seventy percent income increase. This trend of pursuing higher education to receive higher income has significantly risen as well as contributed to the growth in overall earnings of Americans (Bureau of Labor). Unequal income is beneficial for American society because it rewards the better educated with a more satisfying income, making for a more productive society, ultimately raising the overall
The direct effects of education on wages have been well documented, however there continues to remain unobservable factors correlated with education that can affect wages, such as the lack of equal opportunity in the access to education. Several
Intelligence tests are inaccurate to measures true ability of a person because genes affect how a person responds to their surroundings, the tests cannot measure the person biological makeup or his true potential for being “smart”.
Once a person has an idea of what intelligence is and what it means, a final thought one might consider is what influences are responsible for the different types of intellect. Two possible influences are genetics and the environment in which one lives, with genetics being the strongest influence (Santrock, 2009, pg. 302). Most researchers agree that a person’s genetics and environment interact with one another to influence the outcome of that person’s intelligence (Santrock, 2009, pg. 302). Genetic influences should be pretty obvious, so there should be no need to explain it; a person’s environment on the other hand, can involve several factors. An environment can consist of elements such as a person’s school, home, friendships, family relationships, and workplaces. All of these components factor in to influence a person’s intelligence.
Moreover In many countries the connection between family wealth, family background and education opportunities is still very powerful. Because people from high class in society tend to receive advantage to support them self in term of long period educational career and qualification better than low class societies, Due to the power of wealth. (Shavit and Blossfeld, 1993). For some reason when the education people enter the labour market. Because education qualification that a person acquiring seem to be advantage for that person if the qualification of education is high. In addition education qualifications seem to be relating to the social background of each person and their later social class background. Therefore the education qualification might be one the reason that support social inequalities and decrease social mobility.
Academic success is largely attributed to intellectual ability in everyday life, even though this supports the literature that is intellectual ability does have a large role over academic success it is only one of many factors that can influence academic success, in this study the effect of intellectual ability will be tested against academic success of students to verify and reproduce the results that exist in abundance within multiple studies (Chamorro-Premuzic & Arteche, 2008). Therefore, we will be testing whether the relationship between intellectual ability and academic performance is significant or not. This constructs the first hypothesis for the study:
First and foremost, Intelligence has always played a major role in how people succeed in life. Wealth or luxury is always perceived to be credited to top tier college graduates or top earning entrepreneurs based on the level of their achievements however that is not completely true. In today's society, people are creating businesses or doing things to gain money but the level of respect is not the same if someone were to go to college. For instance, a doctor may graduate from Harvard while another doctor may graduate from his or her community college. Due to the fact that the first doctor was a Harvard graduate, the doctor may be taken seriously with patients, coworkers and even jobs in the future. Sometimes though intelligence does not have to be learned but can be a natural given gift. Every person is born with a natural gift that helps push them to their goals. Therefore people should not be measured on their IQ level or type of degree. At times people compete with