General Mental Ability and pay: Nonlinear effects

While many studies have examined the linear relationship between intelligence and economic success, only few, if any, examined their nonlinear relationships. The current study examines such relationships in a large, nationally representative sample, using pay as an indicator of economic success. The results show that the effect of General Mental Ability (GMA) on pay depends on occupational complexity; the greater the complexity, the stronger the effect. They also show that, by and large, there is a marginally decreasing (concave) effect of GMA on pay. Methodological and practical questions concerning the relationship between cognitive ability and pay are discussed.