we find that the relationship between ability and wage is strong overall, yet above €60,000 per year ability plateaus at a modest level of +1 standard deviation. The top 1 per cent even score slightly worse on cognitive ability than those in the income strata right below them. We observe a similar but less pronounced plateauing of ability at high occupational prestige.
So these people re not hard working – they are not smart – so why are they Ultra Rich? Could it be because of all the capital from their already rich families that gives them an incredible headstart compared to other people?
The answer is yes.