3 ms·
The 100k is a net present value calculation, which includes a 5% per year discount, which is quite steep. 1/1.0515<0.5, 0.9530<0.25. The undiscounted difference
by woopwoop 7y ago
The 100k is a net present value calculation, which includes a 5% per year discount, which is quite steep. 1/1.0515<0.5, 0.9530<0.25. The undiscounted difference in lifetime earnings looks, just eyeballing the figure, to be around 300-500k.
- dahart 7y agoYes, precisely. It seems like a good idea to keep an eyeball on the absolute, unadjusted numbers, even if controlling for IQ and other factor is a valid way to look at it, since the experience of being someone in the disadvantaged bracket is not a minuscule difference. Flattening the perceived income difference by controlling for IQ hides the absolute magnitude of income differences. Plus there’s always the chance that the model is wrong, and/or not accounting for everything.