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  • Level: GCSE
  • Subject: Maths
  • Word count: 4719

What role does intelligence play in earning potential?

Extracts from this document...



Candidate: Sergei Perfiliev

Date: May, 2005

Area: Psychology

Supervisor: Christian Bryan

Word Count: 3899 words


This study established an extent that intelligence has on earning potential of an average individual. The paper, first, discussed the meaning of the term intelligence and how it is quantified. Since the intelligence is a complex aspect, the essay separately focused on elements that make it, such as IQ and EQ, and then by examining psychological researches’ data, analyzing statistics, case examples and surveys on each element, it brought IQ’s and EQ’s analyses together and reached the conclusions concerning intelligence as a whole. Intelligence is reinforced by nature and nurture. IQ is measured through IQ testing and AFQT. EQ is quantified by self-report essays and by MSCEIT testing. Individuals with higher IQ do tend to earn more, but IQ’s overall influence is little, still not negligible. EQ serves as a better predictor of earning potential than any other factor and influences future income to the great extent. Therefore, combined IQ and EQ factors, which make up intelligence, play a very significant role in shaping the future earnings on individual. Other factors, such as luck and social, family backgrounds play a much lesser role than intelligence in predicting one’s earning potential.

The Table of Contents:

Introduction _____________________________________________________________ 4

What is Intelligence? ____________________________________________________ 4-7

How is it Quantified? ____________________________________________________ 7-9

What Roles does Intelligence play in Earning Potential? _______________________ 10-12

What Other Factors Affect Earning Potential? _______________________________ 12-14

Conclusion ___________________________________________________________ 14-16

Bibliography ____________________________________________________________ 17

Appendices _____________________________________________________________ 18


The concern of why some individuals become extremely successful while others fail miserably has been questioning the mind of almost every individual and interested many psychologists.

...read more.


The emotional quality is far more difficult to calculate through psychometric testing, because of its innately subjective nature, and usually such tests depend on its author’s definition of emotional intelligence.  However, psychometric testing is also the only practical assessment for approximate value of people’s EQ. Most often, EQ is determined through Self-Report testing, such as Bar-On EQi tests[10], in which the subjects are asked to write a self-evaluation account. Its analysis provides insights into person’s personality traits and characteristics that determine the level of EQ.[11] However, such way of testing is criticized for its validity, since self-report shows what the subjects think of their personality and therefore measures their self-image, and does not asses actual EQ skill and abilities.

The test that comes closest to real assessment of EQ would be MSCEIT, developed by Mayer, Salovey and Caruso (1990).[12] It measures the ability of people to solve emotional tasks, instead of asking them to evaluate their performance themselves. The test consists of four matching, writing or multiple-choice components: the ability to identify emotions from various face expression pictures and abstract images; the ability to decide what emotions should one express in a given stimuli situations to generate the best solution; the ability to manage emotions by combining some of them to form another emotion, i.e. the subject might propose a combination of sadness and fatigue as components of depression; and the ability to have an awareness of personal emotions which arise from a given stimuli, either a situation or an image.[13]

However, MSCEIT has been criticized for reliability and validity flaws (Davies, Stankov, Roberts, 1998)[14]. It accounts for too many variables that can influence the true level of EQ, like current personal mood and disposition, or an environment were the test is taken.

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Grabame, Hill. ALevel Psychology. Oxford: Oxford University Press, 2001.

Hunter, John E., and Frank L. Schmidt. “Employment testing: Old theories and new research findings.” American Psychologist 36 (1981).

“Leading by Feel.” Harvard Business Review (Jan. 2004): 31.

Mayer, John D., et al. “Measuring Emotional Intelligence with the MSCEIT V2.0.” Unpublished essay, 17 July 2001. 4 Oct. 2004 <http://research.yale.edu/heblab/pdf/Mayer.Salovey.Caruso.Sitarenios.MSCEIT.Emotion.2003.pdf>.

Sjoberg, Lennart, and Elisabeth Engelberg. “Measuring and Validating Emotional Intelligence as performance or Selfreport.” Working paper, 7 Feb. 2004. 26 Sept. 2004 <http://swoba.hhs.se/hastba/papers/hastba2004_003.pdf>.

Sloan, Van. “State IQ affects income more than politics.” Social Quotient® (SQ).  26 Sept. 2004 <http://www.sq.4mg.com/stateIQincome.htm>.

“Testing Emotional Intelligence.” Psychology Department: University of Toronto.  26 Sept. 2004 <http://www.psych.utoronto.ca/~reingold/courses/intelligence/cache/testing_ei.htm>.

Appendix 1:


[1] Fletcher; Richburg: Emotional Intelligence: directing a child’s emotional education

[2] Grabame, pg. 26

[3] Grabame, pg. 26

[4] Grabame, pg. 26

[5] Grabame, pg. 149

[6] Grabame, pg. 149

[7] Grabame, pg. 148

[8] “Leading by Feel.” Harvard Business Review (Jan. 2004): 31

[9] Grabame, pg. 245

[10]"Emotional Intelligence Tests." <http://eqi.org/eitests.htm>.

[11]"Testing Emotional Intelligence." Psychology Department: University of Toronto.

[12]"Emotional Intelligence Tests." <http://eqi.org/eitests.htm>.

[13]Gosling: "Emotional Intelligence Testing & Reporting."

[14]Lennart; Engelberg: “Measuring and Validating Emotional Intelligence as performance or Selfreport.”

[15] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

[16] Goleman, pg22

[17]Hunter, Schmidt. “Employment testing: Old theories and new research findings.”

[18] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

[19] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

[20] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

[21] Sloan, Van. “State IQ affects income more than politics.”

[22] Goleman, pg14

[23] Goleman, pg 3

[24] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

[25] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

[26] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

[27] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

[28] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

[29] Dickens, Kane, Schultze. “Does ‘The Bell Curve’ ring true?”

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