The Witness Box

Commenting on expert evidence, economic damages, and interesting developments in injury, wrongful death, business torts, discrimination, and wage and hour lawsuits

Thursday, September 02, 2004

How good of a predictor is the SAT of minor's future earnings?

Economic damage calculations involving minors are tough. One of the major debates concerning calculating losses for minors involves the S.A.T. Simply put some economic experts think the S.A.T. is a strong predictor of future earnings. For examples, some studies, such as http://nces.ed.gov/pubs2000/2000043.pdf, suggest that better performance on the S.A.T. suggest higher earnings in the future. Some studies have suggested that a 100 point increase in S.A.T. is correlated with a 6 to 10% increase in post-college wages.

Other studies, such as the study performed by Daniel Hammermesh et al. in 2002 (They examined the post graduation wages of economics majors) showed either a weakly positive or a statistical unimportant relationship between S.A.T. score and post-graduation earnings.

In practical terms, this suggest that the attorney should if the data is available collect information on the S.A.T scores of an injured or deceased minor.

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