Regional differences in intelligence and economic activity: A brief note

Abstract

Because intelligence predicts economic success at the individual level, the present study explored at the aggregate level whether the average IQ of residents of the American states was associated with the positive economic performance of the states (the growth in the gross state product per capita) and with negative economic behavior (foreclosure rates and credit card debt). States whose residents had higher estimated intelligence, based on standardized tests given to students in the states, had better economic performance, with higher per capita income, stronger growth in gross state product per capita, lower unemployment rates, lower foreclosure rates during the recent economic crisis, and lower credit card debt. The implication of these results is that improving intellectual functioning might improve state (and national) economic performance.