It is a general expectation that IQ measures the financial well-being of the person. It is a perception that the higher the IQ, the higher the chances of an individual generating more income. Income is the money that you get in the form of a paycheck. You have to work in order to generate income for yourself. It is not inherited and one has to earn it for himself.
A large number of research studies have been conducted to analyze the relationship between IQ with income and wealth. Such studies aimed to identify whether the people who have high IQ scores are capable to generate more income for themselves as compared to those who have low IQ levels. A large number of online IQ tests are designed to measure the relationship between IQ and income.
The nature of relationship between IQ and income
Few research studies have found that those having high IQ scores perform well in their jobs. An increase in IQ levels translates into an increase in job performance. Few studies have claimed that IQ has a substantial effect on income. As intelligence increases job performance it further increases the amount of income.
A research study conducted by Zagorsky claimed that a person having an IQ score above 130 might end up earning around $12000 more per year as compared to those who have an average IQ score of 100.
Zagorsky initially found a positive correlation between IQ and net worth. But when he controlled a few factors during his research investigation such as divorce, inheritance, types of work and jobs, and the educational background he found no link between IQ and net worth. Even those who had an average IQ score of 105 had a net worth higher as compared to those who were smarter with scores above 110.
Income has a moderate correlation with IQ. It is seen that smart people perform their jobs well. Better job performance increases their chances of promotion which further benefits them to generate more income for themselves.
But it is not feasible to give all the credit to a single factor of intelligence. It is not the single factor explaining the wealth and net worth of an individual. Those who have low intelligence levels should not feel that they are less in any regard. They should not believe that they are handicapped. Their capability to generate money depends on a large number of factors other than intelligence.
Other Cultural and Social factors
Zagorsky found that those who had been divorced had $9600 less wealth as compared to those who were not divorced. He even found that smokers had an $11,000 reduction in their net worth. Zagorsky highlighted that these external factors, other than IQ, have a great impact on income generation.
Richard Wolff says that smart people often have a high level of expectations regarding what they deserve. They claim what they are entitled to. For instance, the notion like “that is what I get for working hard”. Such people continuously want to improve their living standards and they want their buying power to increase over time.
The reality of Income and IQ
Those who have high IQ scores do not have any additional advantage over those who have average IQ scores. Professors are usually the smartest people around but they are not the ones who earn the most. If you look at the lifestyle of professors around you will find out that they are intelligent but they are not much wealthy.
It is not appropriate to give all the recognition to a single factor of intelligence. Those who have low intelligence levels should not feel that they are less in any regard. They should not believe that they are handicapped. Their capability to generate money depends on a large number of factors other than intelligence.
Intelligence does affect income generation but it is not the single factor doing so. There are several other factors that affect the opportunities of a person to generate income such as level of commitment, educational background, interpersonal skills and abilities to negotiate, etc.
Another important factor to reflect upon is if income is the only factor that identifies the success rate of an individual. Success depends upon a large number of factors such as happiness, effective management of stress, and general management skills.
It is not feasible to confine income generation to intelligence only. Those who earn more take into consideration a large number of factors. It is also important to know the difference between income and wealth. The wealth is normally inherited while the income has to be earned with self-efforts and hard work. To measure intelligence it is important to undertake online IQ tests available. These tests measure various skills and attributes that affect the intelligence level of an individual.
