Research shows that rich does not = smart. Interesting association between cognitive ability and annual income. The borderline is an annual income of 7.5 million yen.

【Research shows that rich people are not necessarily smarter】


・In this study, the subjects were 670,203 citizens between the ages of 18 and 60 who held some kind of job between 1991 and 2003. All subjects were male.

・It turns out that Swedish men with higher cognitive ability can expect to earn more money than others with lower ability. However, even men in the lowest-performing category earn more than one-third as much as men in the highest-performing category, so the difference in real terms is not large. On the other hand, we found that men in the highest-performing category cannot expect to earn a significant return in terms of income

・When we examined the cognitive ability of men working for high wages, we found that up to a certain level, there was a relationship between cognitive ability and high income, but once wages exceeded a threshold of 600,000 Swedish kronor per year (about 7.5 million yen), cognitive ability and income were not significantly related.

・Thus, above a certain wage level, higher income may not necessarily mean higher cognitive ability

・Similar results as for wages when occupational status was used instead of wages as a measure of career success


These are the quotes from the article




Interesting boundary line of 7.5 million yen per year.


We need to talk about this in light of the fact that the survey subjects are Swedish and all male.


Very interesting story about the link between cognitive ability and income.


According to the study,


Up to an annual income of 7.5 million yen, the association with cognitive ability was observed, but

No association was found for annual income above 7.5 million yen.


Well, indeed.

Job performance and income are not determined solely by how smart you are, right?


By the way.


Cognitive ability = IQ and academic performance

Non-cognitive abilities = the way you think about things, the way you approach things, your behavior, etc.


This is how it is said.


I think the balance between these two factors and the total power of these two factors will determine your income.


However, this survey, depending on how you look at it,


Perhaps we can look at it as being possible to cover up to around 7.5 million yen a year to some extent by being smart (cognitive ability), right?


The impact of non-cognitive ability may be more significant when annual income is above 7.5 million yen.




Incidentally, I recall the following story.↓


【Latest data shows the relationship between annual income and happiness】


It is a well-known story that “annual income between 6.5 million yen and 8 million yen is the peak of happiness.


Don’t you think that figure is pretty close to the 7.5 million yen in this case?


From here, many hypotheses could be made, but since this is going to be a long story, I’ll leave it at that for today. What hypothesis would you make?


See you then.




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I would also like to know the relationship between non-cognitive ability and annual income, but that is difficult because non-cognitive ability is an unquantifiable ability.




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