Response to a comment
“peterike” wrote in a comment:
Well, we all understand that college degrees are proxies for the IQ tests that companies are not legally allowed to give.
This is wrong, and the reason why it’s wrong was answered in my classic post, Disparate impact and the irrationality of white-collar employment. I just edited the original post because it contained a lot of typos, so go read it, or re-read it if you’ve already read it. Even I learned something from it, and I wrote it!
I think that one of the reasons why some readers of HBD blogs get this wrong is because they know a lot about IQ and spend a lot of time thinking about it, and then become completely unaware that the average person, which includes the average person who works in a corporation and has the power to make or influence hiring decisions, knows absolutely nothing about the science of IQ.
Corporations make money not because they know what they are doing, but because they have monopoly power. There were certainly a lot of stupid people in the upper management at the company I used to work for, but the company made money anyway. They had a monopoly.
The company had an HR department, and the HR department couldn’t care less if managers hired stupid people, but they were very, very concerned that mangers weren’t hiring enough black and Hispanic people.