This article reviews findings on the predictive validity of psychometric te
sts of intelligence. The article is divided into five major parts. In the f
irst part, the issues with which the article deals are introduced. In the s
econd part, we discuss what psychologists can learn about the predictive va
lidity of intelligence tests from results obtained in the established marke
t economies. Intelligence quotient (IQ) is considered in relation to educat
ional achievement, employment prospects and wealth generation, career outco
mes, and well-being. In the third part, the intelligence tests (primarily f
or infants and children) that yield the IQ scores are discussed. In the fou
rth part, constraints are presented on the interpretations of findings, inc
luding cross-cultural issues. We conclude that conventional tests of intell
igence can be useful but only if they are interpreted very carefully taking
into account the factors that can affect them, and in conjunction with oth
er measures.