{"id":68415,"date":"2023-06-02T01:09:10","date_gmt":"2023-06-02T05:09:10","guid":{"rendered":"https:\/\/world.edu\/?p=68415"},"modified":"2023-06-02T01:09:10","modified_gmt":"2023-06-02T05:09:10","slug":"are-rich-people-more-intelligent-heres-what-the-science-says","status":"publish","type":"post","link":"https:\/\/world.edu\/are-rich-people-more-intelligent-heres-what-the-science-says\/","title":{"rendered":"Are rich people more intelligent? Here\u2019s what the science says"},"content":{"rendered":"

\"\"<\/p>\n

From\u00a0White Lotus<\/a>\u00a0to\u00a0Succession<\/a>, there\u2019s high demand for television dramas about the super rich. The characters on these shows are typically portrayed as entitled, hollow and sad. But they aren\u2019t necessarily depicted as unintelligent. So are rich people rich because they are smart?<\/p>\n

In the middle of a cost-of-living crisis, this question goes beyond scientific curiosity and touches something deeper.<\/p>\n

If people\u2019s net worth were only the consequence of their intelligence, the gigantic\u00a0wealth gap<\/a>\u00a0we see in our society might be perceived as less intolerable \u2013 at least by some. Inequality would be the price to pay for having the smartest lead us all to a better future.<\/p>\n

There is little doubt that intelligence contributes to one\u2019s\u00a0economic and professional success<\/a>. Take self-made billionaires Elon Musk, Jeff Bezos and Ray Dalio, just to name a few. It would be surprising if top innovators in advanced fields such as tech and finance turned out to be average.<\/p>\n

In fact, intelligence is the best predictor of both\u00a0educational achievement<\/a>\u00a0and\u00a0work performance<\/a>. And academic and professional success is, in turn, a fairly good forecaster of income. But that\u2019s not the whole story.<\/p>\n

Not all highly intelligent people are primarily driven by a desire for wealth \u2013 they\u00a0often have a thirst for knowledge<\/a>. Some may instead opt for comparatively less well paying jobs that are more intellectually rewarding, such as architecture, engineering or research. A recent Swedish study showed that cognitive test scores of the top 1% of earners\u00a0were not significantly different<\/a>\u00a0to the scores obtained by those who earned slightly less.<\/p>\n

But to what extent does intelligence boost wealth? Before diving into the evidence, we must clarify what researchers mean by \u201cintelligence\u201d.\u00a0Intelligence<\/a>\u00a0can be defined as the ability to perform a wide range of cognitive tests successfully. And these seem to be linked. If someone is good at resolving a particular cognitive test, they will probably perform well in other cognitive tests too.<\/p>\n

Intelligence is not a monolithic trait, though. In fact, it consists of at least two broad constructs:\u00a0fluid intelligence and crystallised intelligence<\/a>. Fluid intelligence taps into core cognitive mechanisms, such as the speed of processing stimuli, memory capacity and abstract reasoning. Conversely, crystallised intelligence refers to those skills developed in a social environment, such as literacy, numeracy and knowledge about specific topics.<\/p>\n

This distinction matters because these two types of intelligence develop\u00a0in different ways<\/a>. Fluid intelligence can be\u00a0inherited<\/a>,\u00a0cannot be boosted<\/a>\u00a0and decreases fairly quickly with age. By contrast, crystallised intelligence\u00a0increases throughout most adulthood<\/a>\u00a0and starts declining only after about 65 years.<\/p>\n

But fluid intelligence helps build up crystallised intelligence. Fluid intelligence represents the brain\u2019s capacity of acquiring and elaborating information. Crystallised intelligence is, to a large extent, acquired information.<\/p>\n

This means that if your reasoning skills are sharp, then you will process new information quickly. You will integrate novel information with old information accurately. Ultimately, this will speed up learning of any discipline and contribute to your academic and financial success.<\/p>\n

Education is a factor<\/strong><\/h4>\n

That said, innate capabilities are not the only thing that matters. Another significant factor is education.<\/p>\n

A\u00a0quantitative review<\/a>\u00a0has established that the more years of schooling, the higher students\u2019 intelligence scores. Crucially, these improvements stem from training in\u00a0specific skills<\/a>\u00a0rather than enhancing general intellectual ability. So school teaches you useful stuff for both professional success and performing intelligence tests.<\/p>\n

Unsurprisingly, education in turn is affected by family socioeconomic status. For example, expensive schools and private tutors provide the student highly efficient\u00a0personalised instruction<\/a>. Access to top quality education may therefore make a huge difference in future income.<\/p>\n

Of course, the influence of family socioeconomic status on wealth does not operate solely through education. Inheritance and networks are among the most obvious mechanisms. This is particularly true for entrepreneurs, whose investing potential and connections are fundamental for business success.<\/p>\n

The role of luck<\/strong><\/h4>\n

So intelligence, education and socioeconomic status all affect one\u2019s income. However, these factors alone are unlikely to fully account for the individual differences in wealth. In fact, a\u00a0recent study<\/a>\u00a0suggests that luck exerts a significant impact.<\/p>\n

This study highlights that the statistical distribution of wealth differs from the distribution of intelligence. Intelligence is \u201cnormally distributed<\/a>\u201d, with most individuals being around average. By contrast, wealth follows a \u201cpareto distribution<\/a>\u201d, a formula which shows that 80% of a country\u2019s wealth is in the hands of only 20% of the population.<\/p>\n

Intelligence versus wealth distribution<\/strong><\/p>\n

\"\"

The distribution of intelligence (left panel) and wealth (right panel; values in log scale). The data are simulated and are shown only for exposition purposes. Author provided<\/p><\/div>\n

This means intellect alone cannot account for the disproportionate disparities between rich and poor in our society.<\/p>\n

The study does not downplay the role of intelligence (or talent in general). A fine intellectual ability improves the chances of getting rich. Nonetheless, intelligence is no guarantee of getting rich. Furthermore, a series of fortunate events can clearly turn unremarkable individuals into high earners.<\/p>\n

That is, when it comes to getting rich, intelligence is neither sufficient nor necessary. But it does help.<\/p>\n

\u201cI\u2019d rather be lucky than good,\u201d says the character Chris Wilton (Jonathan Rhys Meyers) in Woody Allen\u2019s film\u00a0Match Point<\/a>. In the light of the evidence we have just reviewed, he may be right.<\/p>\n

Being born into a wealthy and highly educated family is a fortunate event. Likewise, random strokes of luck (like winning the lottery) do not come from years of hard work. We may even push the argument a bit further and conclude that being intelligent is a form of luck itself.<\/p>\n

Many things that contribute to achieving financial success are beyond our control. Most, if not all, extremely wealthy people have been blessed by Lady Luck somehow.<\/p>\n

Conversely, making the most of what luck brings us certainly matters. Granted, a good deal of individuals merely cash in the benefits of\u00a0inherited privilege<\/a>.<\/p>\n

Regardless, many small and big fortunes stem from an intelligent use of the resources we are lucky to have been gifted with \u2013 whether they are intellectual, educational or socioeconomic.<\/p>\n

Author Bios:<\/strong> Giovanni Sala is a Lecturer in Psychology at the University of Liverpool and Fernand Gobet is a Professorial Research Fellow of Psychology at the London School of Economics and Political Science<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

From\u00a0White Lotus\u00a0to\u00a0Succession, there\u2019s high demand for television dramas about the super rich. The characters on these shows are typically portrayed as entitled, hollow and sad. But they aren\u2019t necessarily depicted as unintelligent. So are rich people rich because they are smart? In the middle of a cost-of-living crisis, this question goes beyond scientific curiosity and […]\n… learn more→<\/a><\/p>","protected":false},"author":33,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[95],"tags":[11667],"coauthors":[11733],"class_list":["post-68415","post","type-post","status-publish","format-standard","hentry","category-lifestyle","tag-intelligence"],"acf":[],"yoast_head":"\nAre rich people more intelligent? 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