Bachelor
of Arts/Bachelor
of Science Programs
in Economics and Finance
A
B.A. or a B.S. degree with a major in economics or a
B.S. degree with a major in finance may be earned through
the Department of Economics and Finance. To visit the
Department's web site click Department
of Economics and Finance.
Careers
in Economics
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The
Economics Major
The
economics major provides a framework for analyzing such
issues as inflation, unemployment, monopoly, and economic
growth. Students learn how the economic system works
to provide goods and services. They study theory, policy,
and trends and explore ways to deal with the economic
problems of society and the individual.
Interests,
skills, and qualities
associated with success in the major
Interests
Current issues such as taxes, poverty, the deficit,
health discrimination, inflation, the environment, and
unemployment; the causes and consequences of economic
and social events; human behavior.
Skills
and qualities
Solving puzzles, logical reasoning, careful observation,
detecting patterns, breaking complex problems into parts,
focusing on the heart of an issue, working with numbers,
writing clearly.
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Recommended
High School Preparation
- English,
4
- precollege
mathematics, 4
- laboratory
science, 3
- social
studies, 2
- history,
2
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Typical
Courses in the Major
-
Microeconomic Theory
- Economic
Statistics
- Macroeconomic
Theory
- Labor
Economics
- Money
and Banking
- Public
Finance
- Business
and Government
- Organization
of Industry
- International
Trade
- Economic
History
- Urban
Economics
- Poverty
and Discrimination
- Environmental
Economics
- Health
Economics
- International
Finance
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What
the Major is Like
Economics is concerned with choices: What are the
best ways to make decisions? How do people actually
make them? What is sacrificed when someone makes a choice?
For in a world of limited resources and unlimited wants,
choosing one thing means giving up another. By understanding
decision making and the choices people have, economists
can predict how people will react to changes. Thus economics
can help people understand the causes of economic and
social events and devise ways to make the world work
better.
Economics
is a practical discipline. It plays an important role
in the design of tax laws; in the information of international
trade policies; in the design of programs to improve
the prospects of poor people; in the regulation of health
care, transportation, and the environment; in the control
of drug smuggling; and in shaping the monetary and fiscal
policies that influence the rate of inflation and availability
of jobs. Through study of economics one can gain a better
understanding of whether taxes should increase or decrease;
whether more or less trade with Japan is desirable;
whether an expanded welfare program is needed; whether
air bags should be installed in automobiles; how to
stop acid rain from destroying forests; and how to make
sure there are jobs available for everyone.
Economics
also has intellectual appeal, especially for those who
like rigorous analysis and problem solving. Economics
typically uses simplified models to deal with a complicated,
disorderly world. For example, when the interest rate
goes up, how does the behavior of the housing industry,
of local government, of banks and automobile dealers
change? What happens to mortgage rates, to local government
services like education and garbage collection, to interest
rates paid on savings accounts, and to the cost of a
new automobile? Economics applies simple models in order
to understand and predict economic behavior. Economics
uses an approach to problem solving that has several
distinguishing features. First, it emphasizes insights
derived from observed facts. Second, because most problems
are complex, it teaches one to isolate the most important
facts, and focus on their implications. Third, the basic
principles of economics are thought to be universal.
A Marxian economist sees class struggle as a consistent,
universal behavior that applies to many problems. A
market-oriented economist see a different principle
at play: balancing of benefits and costs. Both see the
world differently, but feel the pattern of behavior
they believe is at work exists everywhere.
The
college curriculum for an economics major usually begins
with principles of microeconomics (they study of individual
firms, consumers, and workers) and macroeconomics (the
study of aggregate income, employment, and prices).
Next, students take two intermediate theory courses
and economic statistics. In these intermediate courses
issues raised in the introductory courses are reexamined
with more powerful analytic tools. Finally, in electives
such as international trade and finance, economic history,
public finance, the organization of industry, labor,
urban, and regional economics, environmental economics,
and comparative economic systems students learn how
basic economic principles apply to a wide range of world
problems.
Although
the economics department is usually located in a school
of liberal arts, sometimes it is part of a business
school; there is, however, little difference between
the majors offered in each.
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Specializations
Specialization
within economics is rare at the undergraduate level.
Other
Majors to Consider
- Agricultural
economics
- Business
administration
- History
- Mathematics
- Philosophy
- Political
science and government
- Psychology
- Sociology
- Statistics
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For
More Information
Joint
Council on Economic Education, 432 Park Avenue South,
New York, NY 10016, (212) 685-5499.
Careers
in Economics
Economic
graduates find jobs in education, government, industry,
public policy, and planning. Many become business managers.
The field is also excellent preparation for law school
or business school.
(Source
for the "Careers in Economics" information up to this
point: Social and Behavioral Sciences, p. 331-333. More
source specifics to be provided later.)
The
following is excerpted from the Occupational Outlook
Handbook (1998-99): p. 145-147.
Candidates
who hold a master's degree in economics have much better
employment prospects than bachelor's degree holders.
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Nature
of the Work
Economists
study the ways society distributes scarce resources
such as land, labor, raw materials, and machinery to
produce goods and services. They conduct research, collect
and analyze data, monitor economic trends, and develop
forecasts. They research issues such as energy costs,
inflation, interest rates, imports, or employment levels.
Most
economists are concerned with practical applications
of economic policy in a particular area. They use their
understanding of economic relationships to advise businesses
and other organizations, including insurance companies,
banks, securities firms, industry and trade associations,
labor unions, and government agencies.
Economists
use mathematical models to develop programs predicting
answers to questions such as the nature and length of
business cycles, the effects of a specific rate of inflation
on the economy, or the effects of tax legislation on
unemployment levels.
Economists
devise methods and procedures for obtaining the data
they need. For example, sampling techniques may be used
to conduct a survey, and various mathematical modeling
techniques may be used to develop forecasts. Preparing
reports on the results of their research is an important
part of the economist's jobs. Relevant data must be
reviewed and analyzed tables and charts prepared, and
the results presented in clear, concise language that
can be understood by non-economists. Presenting economic
and statistical concepts in a meaningful way is particularly
important for economists whose research is directed
toward making policies for an organization.
Economists
who work for government agencies may assess economic
conditions in the United States or abroad. In order
to estimate the economic effects of specific changes
in legislation or public policy. They may study areas
such as how the dollar's fluctuation against foreign
currencies affects import and export levels. The majority
of government economists work in the areas of agriculture,
labor, or quantitative analysis; some economists work
in almost every area of government. For example, some
economists in the U. S. Department of Commerce study
production, distribution, and consumption of commodities
produced overseas, while economists employed with the
Bureau of Labor Statistics analyze data on the domestic
economy such as prices, wages, employment, productivity,
and safety and health. An economist working in State
or local government might analyze data on the growth
of school-aged populations, prison growth, and employment
and unemployment rates, in order to project spending
needs for future years.
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Working
Conditions
Economists
have structured work schedules. They often work alone,
writing reports, preparing statistical charts, and using
computers, but they may also be an integral part of
a research team. Most work under pressure of deadlines
and tight schedules, and sometimes must work overtime.
Their routine may be interrupted by special requests
for data, as well as by the need to attend meetings
or conferences; regular travel may be necessary to do
this.
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Employment
Economists
are employed by private industry, particularly economic
and marketing research firms, management consulting
firms, banks, securities and commodity brokers, and
computer and data processing companies. Economists are
also employed by a wide range of government agencies,
primarily in the State Government. The Departments of
Labor, Agriculture, and Commerce are the largest Federal
employers of economists. A number of economists combine
a full-time job in government, academia, or business
with part-time or consulting work in another setting.
Employment
of economists is concentrated in large cities. Some
economists work abroad for companies with major international
operations for U. S. government agencies, and for international
organizations like the World Bank and the United Nations.
Many
economists also hold economics faculty positions in
colleges and universities. Economics faculty have flexible
work schedules, and may divide their time among teaching,
research, consulting, and administration.
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Training,
Other Qualifications, and Advancement
Graduate
training is required for most private sector economist
jobs and for advancement to more responsible positions.
Economics includes many specialties at the graduate
level, such as advanced economic theory, econometrics,
international economics, and labor economics. Students
should select graduate schools strong in specialties
in which they are interested. Some schools help graduate
students find internships or part-time employment in
government agencies, economic consulting firms, or financial
institutions prior to graduation.
In
the Federal Government, candidates for entry-level economist
positions must have a bachelor's degree with a minimum
of 21 semester hours of economics and 3 hours of statistics,
accounting, or calculus. Competition is keen for those
positions which require only a bachelor's degree, however,
and additional education or superior academic performance
is likely to be required to gain employment.
For
a job as an instructor in many junior and some community
colleges, a master's degree is the minimum requirement.
In most colleges and universities, however, a Ph.D.
is necessary. A Ph.D. and extensive publications in
academic journals are required for a professorship,
tenure, and promotion.
Whether
working in government, industry, research organizations,
marketing, or consulting firms, economists who have
a graduate degree usually qualify for more responsible
research and administrative positions. A Ph.D. is necessary
for top economist positions in many organizations. Many
corporation and government executives have a strong
background in economics.
A
bachelor's degree with a major in economics is generally
not sufficient to obtain a position as an economist,
but it is excellent preparation for many entry-level
positions such as research assistant, or administrative
or management trainee.
Economics
majors can choose from a variety of courses, ranging
from those which are intensely mathematical such as
microeconomics, macroeconomics, and econometrics, to
more philosophical courses such as the history of economic
thought.
Aspiring
economists should gain experience gathering and analyzing
data, conducting interviews or surveys, and writing
reports on their findings while in college. This experience
can prove invaluable later in obtaining a full-time
position in the field, since much of their work, in
the beginning, may center around these duties. With
experience, economists eventually are assigned their
own research projects.
Those
considering careers as economists should be able to
work accurately because much time is spent on data analysis.
Patience and persistence are necessary qualities sine
economists must spend long hours on independent study
and problem solving. At the same time, they must work
well with others. Economists must be able to present
their findings, both orally and writing, in a clear,
meaningful way.
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Job
Outlook
Employment
of economists is expected to grow about as fast as the
average for all occupations through the year 2006. Most
job openings, however, are likely to result from the
need to replace experienced workers who transfer to
other occupations, retire, or leave the labor force
for other reasons.
Opportunities
for economists should be best in private industry, especially
in research, testing, and consulting firms, as more
companies contract out for economic research services.
Competition, the growing complexity of the global economy,
and increased reliance on quantitative methods for analyzing
the current value of future funds, business trends,
sales, and purchasing should spur demand for economists.
The growing need for economic analyses in virtually
every industry should result in additional jobs for
economists. Employment of economists in the Federal
Government should decline more slowly than the rate
projected for the entire Federal workforce. Average
employment growth is expected among economists in State
and local government.
An
advanced degree coupled with a strong background in
economic theory, mathematics, statistics, and econometrics
provides the basis for acquiring any specialty within
the field. Those skilled in quantitative techniques
and their application to economic modeling and forecasting,
using computers, coupled with good communications skills,
should have the best job opportunities.
Those
who graduate with a bachelor's degree in economics through
the year 2006 will face keen competition for the limited
number of economist positions for which they qualify.
They will qualify for a number of other positions, however,
where they can take advantage of their economic knowledge
in conducting research, developing surveys, or analyzing
data. Many graduates with bachelor's degrees will find
good jobs in industry and business as management or
sales trainees or administrative assistants. Economists
with good quantitative skills are qualified for research
assistant positions in a broad range of fields. Those
who meet State certification requirements may become
high school economics teachers. The demand for secondary
school economics teachers is expected to grow as economics
becomes an increasingly important and popular course.
Candidates
who hold a master's degree in economics have much better
employment prospects than bachelor's degree holders.
Many businesses, research and consulting firms, and
government agencies seek master's degree holders who
have a strong computer and quantitative skills and can
perform complex research, but do not command the higher
salary of a Ph.D. Ph.D. degree holders are likely to
face competition for teaching positions in colleges
and universities.
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Earnings
According
to a 1997 salary survey by the National Association
of Colleges and Employers, persons with a bachelor's
degree in economics received offers averaging $31,300
a year.
The
median base salary of business economists in 1996 was
$73,000, according to a survey by the National Association
of Business Economists. The median entry-level salary
was about $35,000, with most new entrants possessing
a master's degree. Ninety-three percent of the respondents
held advanced degrees. The highest salaries were reported
by those who had a Ph.D., with a median salary of $85,000.
Master's degree holders earned a median salary of $65,500,
while bachelor's degree holders earned $60,000. The
highest paid business economists were in the securities
and investment industry, which reported a median income
of $100,000, followed by banking and mining at $93,000
and the nondurable manufacturing industry at $87,000.
The lowest paid were in government and nonprofit research.
The
Federal Government recognizes education and experience
in certifying applicants for entry level positions.
The entrance salary for economists having a bachelor's
degree was about $19,500 a year in 1997; however, those
with superior academic records could begin at $24,200.
Those having a master's degree could qualify for positions
at an annual salary of $29,600. Those with a Ph.D. could
begin at $35,800, while some individuals with experience
and an advanced degree could start at $42,900. Starting
salaries were slightly higher in selected areas where
the prevailing local pay was higher. The average annual
salary for economists employed by the Federal Government
was $63,870 a year in early 1997.
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Related
Occupations
Economists
are concerned with understanding and interpreting financial
matters, among other subjects. Other jobs in this area
include financial managers, financial analysts, underwriters,
actuaries, credit analysts, loan officers, and budget
officers.
Sources
of Additional Information
For
information on careers in economics and business, contact:
National Association of Business Economists 1233 20th
Street NW Suite 505 Washington, D.C. 20036
Information
on obtaining a job with the Federal Government may be
obtained from the Office
of Personnel Management or through a telephone based
system. Consult your telephone directory under U. S.
Government.
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