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crystallized intelligence not significant?

Posted: Sun Jun 10, 2018 11:42 am
by jdavalos
What if crystallized intelligence affects those entrepreneurs that have achieved a higher scale of "production"? This is in line with a production function framework where intelligence is an input that could exhibit higher returns as the size of the production increases. This may be answered by your quantile regression over firms' size.

Apparently, crystallized intelligence is significant if individual's education is omitted. Can we argue that years of education is another proxy of crystallized intelligence? If yes, both should not be included in the main equation. Instead you could instrument one with the other. This is a classical approach of the econometrics of measurement errors.