Is Membership In The 1% Club Education Or IQ?

Greg Mankiw makes a case for graduate school education:

Apart from their bank accounts, Gallup finds education to be the greatest difference between the wealthiest 1% of Americans and everyone else. The Gallup analysis reveals that 72% of the wealthiest Americans have a college degree, compared with 31% of those in the lower 99 percentiles. Furthermore, nearly half of those in the wealthiest group have postgraduate education, versus 16% of all others.

But it’s not education that gets people into the 1%.

It’s IQ and hard work.

Education produces little more than signaling.