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Careers in Economics

CAREERS IN preting the impact of public/governmental policy on the
ECONOMICS firm, and collecting and processing data. They also supply
information to management that affects decisions on the
Economists study how society uses, regulates, and distrib- marketing and pricing of company products, as well as
utes its natural and human-made resources such as land, providing long- and short-term economic forecasts (“Eco-
labor, raw materials, and machinery to produce goods and
services (Horizons, 2000). In simpler terms, they study nomics,” 1997). For example, a business firm’s managers
how effectively society meets its human and material might ask its marketing analysts to provide specific infor-
mation on which to base marketing and pricing policies.
needs. Economists also study how economic systems
Using econometric modeling techniques, the analysts
address three basic questions: What shall we produce?;
How shall we produce it?; For whom shall we produce it? develop projections of market reactions to various price
They then compile, process, and interpret the answers to levels throughout the industry. On the basis of these pro-
these questions (Economists, 2005). Economists may ana- jections, the mangers can make informed pricing deci-
lyze the relationship between supply and demand and sions. Informed, rational decision making on economic
develop theories and models to help predict these future matters is what economics is all about.
relationships. They help provide a logical, ordered way of
looking at various problems. They attempt to explain Government economists work for federal, state, and local
social concerns such as unemployment, inflation, eco- governments in a wide variety of positions involving
nomic growth, business cycles, tax policy, or farm prices. analysis and policy making. The federal government is a
Most economists apply their skills to solve problems in major source of employment for economists with an
specific areas, such as transportation, labor, heath, finance, undergraduate degree; information about job openings in
marketing, corporate planning, energy, or agriculture. various agencies is available from the Federal Employment
Business firms, banks, insurance companies, labor unions,
Information Center. A bachelor’s degree in economics is a
governmental agencies, and others seek advice from econ-
good qualification for an entry-level position; a person
omists to use in their decision making.
can advance to higher positions by obtaining a graduate
degree or by promotion from within. There are jobs for
TYPES OF ECONOMISTS labor, international, development, and population econo-
Theoretical economists, employing mathematical mod- mists, as well as micro- and macroeconomists (Careers,
els, develop theories to examine major economic phenom- 2001). Economists who work for government or private
ena, such as the causes of business cycles or inflation or the research agencies assess economic trends in order to for-
effects of unemployment, energy prices, or tax laws. Most mulate policy in such areas as agriculture, forestry, busi-
economists, however, concern themselves with the practi- ness, finance, labor, transportation, urban economics, or
cal application of economic policy to such areas as international trade and development (Horizons, 2000).
finance, labor, agriculture, health, and transportation Working for Congress is a relatively new area for econo-
(Harkavy, 1999). Although there is a wide range of careers mists. Legislation and the issues facing Congress are
open to economists, there are three main career paths: becoming more complex and economic in nature, and as
business, government, and academia. Each type of econo-
a result, members of Congress are turning to economists
mist applies the economic approach to decision-making
for advice on these issues.
in a different setting.
Academics is another major area in which economists are
Business economists work in such areas as manufactur-
found. Economics professors teach basic macro- and
ing, mining, transportation, communications, banking,
insurance, retailing, private industry, securities and invest- microeconomics courses (the “big picture” versus individ-
ual companies/persons) as well as courses on advanced
ment firms, management consulting firms, and economic
and market research firms, as well as trade associations topics, such as economic history and labor economics.
They also do research, write papers and books, and give
and consulting organizations (Careers, 2001). Many pri-
vate firms, both large and small, recruit undergraduate lectures, contributing their knowledge to the advance-
economics majors for jobs. These jobs are general-purpose ment of the discipline (Economists, 2005). In order to
ones for which employers seek bright, highly-motivated teach at a four-year college, it is essential to have a Ph.D.
students who can learn a specific business through on-the- in economics. Faculty members usually divide their time
job training. To become a professional business economist among teaching, research, and administrative responsibil-
requires graduate training. Business economists perform ities. Many academic economists also have the opportu-
such tasks as forecasting the business environment, inter- nity to consult either for business or government.

84 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION