Has Cognitive Ability Become More Important for Education and the Labor Market? A Comparison of the Project Talent and 1979 National Longitudinal Survey of Youth Cohorts.

Abstract

Modernization and meritocratic theories contend that with modernization, socioeconomic background (SES) becomes less important for educational and socioeconomic attainments, while cognitive ability becomes more important. However, the evidence is mixed. This study investigates if the effects of SES and cognitive ability on educational and labor market outcomes have changed in the US by comparing two longitudinal cohort studies: the 1960 Project Talent and the 1979 National Longitudinal Survey of Youth. For all outcomes-grades-at-school, educational and occupational attainment, and income-cognitive ability clearly has stronger effects than a composite and broad measure of SES. The effects of cognitive ability for grades-at-school and income are notably stronger in the more recent cohort, whereas its effects on educational and occupational attainment are similar. SES effects, net of ability, for educational and occupational attainment are only moderate and for school grades and income are very small (β < 0.10). However, for each outcome SES effects are stronger in the more recent NLSY79 cohort. This is attributed to ability being a stronger influence on the educational and socioeconomic attainments of NLSY79 parents compared to Project Talent parents. These analyses suggest that in the US, cognitive ability has long been an important, and SES a much weaker, influence on educational and subsequent socioeconomic outcomes.