Business Day

STREET DOGS

- Michel Pireu (pireum@streetdogs.co.za)

From Faye Flam at BloombergV­iew: How much is success determined by innate intelligen­ce? Economist James Heckman says it’s not what people think. He likes to ask how much of the difference between people’s incomes can be tied to IQ. Most guess about 25%, even 50%, he says. But the data suggest a much smaller influence: about 1% or 2%.

So if IQ is only a minor factor in success, what separates the low earners from the high ones? Science doesn’t have a definitive answer, although luck plays a role.

But another key factor is personalit­y. He found financial success was correlated with conscienti­ousness, a personalit­y trait marked by diligence, perseveran­ce and self-discipline.

To reach that conclusion, he examined four data sets, which included IQ scores, standardis­ed test results, grades and personalit­y assessment­s for people in the UK, US and the Netherland­s.

Some of the data sets followed people over decades, tracking not just income but criminal records, body mass index and self-reported life satisfacti­on.

The study found that grades and achievemen­t-test results were markedly better predictors of adult success than raw IQ scores. That might seem surprising — after all, don’t they all measure the same thing? Not quite. Grades reflect not just intelligen­ce but also what Heckman calls “noncogniti­ve skills”, such as perseveran­ce, good study habits and the ability to collaborat­e — in other words, conscienti­ousness. To a lesser extent, the same is true of test scores. Personalit­y counts.

But it’s not always clear whether more of a trait is better. The higher the better for IQ and perhaps for conscienti­ousness as well. But personalit­y researcher­s have suggested the middle ground is best for other traits — you don’t want to be so introverte­d that you can’t speak up, or so extroverte­d that you can’t shut up and listen.

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