How to Become an Economist
Becoming an economist and understanding the dynamic interplay of how goods and services become available to consumers, and how economies function in a national economy or within international markets, is an exciting career upon which to embark. Becoming an economist begins with a solid educational background at an accredited college or university. Reputable institutions offer a variety of degree programs, both online and in the traditional on-campus setting.
Step One: Find the Best College to Meet Your Needs
Whether you are planning on becoming a full or part time student, in order to become an in-demand economist in either the public or private sector, you will want to get a bachelor’s degree. Begin by surveying and studying the different colleges and universities, and their reputations regarding their economics departments. Speak to admissions counselors and ascertain what your best route would be for earning your bachelor’s degree. You may find it advantageous to acquire your general education requirements at a community or junior college. Be sure to learn, however, which credits and from which junior/community colleges, will transfer to your intended degree-granting institution.
Step Two: Become Familiar with Online Economist Groups
Whether or not you are enrolled in college, you will benefit from joining online economics-based groups. These groups can range from informal discussions to high-level academic forums.
1. The American Economic Association (AEA) https://www.aeaweb.org/
The AEA is a not-for-profit, non-partisan association which was established in 1885. Although its nature is scholastic, both students and professionals are encouraged to become members. The AEA posts job listings, outlines best practices for economists, offers annual research highlights, multiple journals (featured, popular and forthcoming), data sources, meetings, conferences, and various mentorship opportunities.
2. The National Association for Business Economics (NABE) https://www.nabe.com/
The NABE is an important professional association due to their wide-ranging business opportunities and jobs, webinars, articles, as well as having a certification program. Achieving certification is one key to becoming a successful economist, and many scholarships are available. Each year they offer thousands of dollars in awards, including full scholarships to NABE’s Certified Business Economist program, as well as a full scholarship to sit for the CBE Exam. Online conferences are available, as are podcasts, online magazines, webinars, and practice exams.
3. The Econometric Society https://www.econometricsociety.org/
Unlike the AEA and NABE, the Econometric Society is an international organization which focuses strictly on “the advancement of economic theory in its relation to statistics and mathematics. The Society operates as a completely disinterested, scientific organization without political, social, financial, or nationalistic bias.” The society has four major publications entitled, Econometrica, Quantitative Economics, Theoretical Economics, and Monograph Series. The Econometric Society offers members an opportunity to attend a world convention, regional activities, various online lectures, committee meetings and to access job opportunity postings.
Step Three: Decide What Kind of Economist You Want to Become
The field of economics is highly diversified, and you will need to ascertain which area you want to go into. Some of the areas are development economics, labor economics, health economics, environmental economics, public finance economics, industrial organization economics, behavioral economics, urban and regional economics, econometric economics, applied economics, experimental economics, academic economics, and financial economics. Here are two popular and prominent areas of work and study:
1. Academic Economist
If you desire to become a professor of economics at either a community college or university, you will need to set your sites at earning at least a master’s degree in economics. Most community colleges employ instructors with a master’s degree, while university full professorships will require a doctorate (Ph.D.) in economics. While on your way to the Ph.D., you will have the opportunity to apply for teaching assistant positions within the economics department. Achieving and keeping a high GPA will ensure you serious consideration for any available positions. Your chosen university may encourage or require you to specialize in either macroeconomics or microeconomics. Macroeconomics is concerned with the big picture or the overall performance and behavior of economies. Microeconomics focuses on how decisions are made by consumers and smaller groups within a larger framework. Your bachelor’s curriculum will undoubtedly offer classes in each which will afford you the chance to explore both subfields within discipline.
2. Financial Economist
As the title suggests, a financial economist is one who researches systems and predicts behaviors and fluctuations within the finance sector. As a financial economist, you would be involved in studies centering on market trends, stocks, bonds, pricing, commodities, and currencies. Your job duties might require proficiency in risk assessment and management, developing investment strategies related to economic indicators, market conditions and risk tolerance. You would need to be able to design investment strategies based on financial modeling and econometric techniques. Depending on your employer, you may have to be able to study and analyze financial derivatives, perform quantitative (mathematical and statistical) ways to assess financial data, create and decipher financial reports, as well as be familiar with financial regulations and compliance requirements.
Job Outlook For Economists
According to the U.S. Bureau of Labor Statistics (https://www.bls.gov/), economists have wonderful opportunities in store for the time period spanning 2022-2023. The field is growing by 6% per year, which is a faster than average rate. In 2022 there were 17,600 jobs, and the median pay per year was $113,940, while the median hourly wage was $54.78. (As a reminder, the “median” amount is not an average, it is the middle value of a dataset. For the U.S. BLS definition go to: https://www.bls.gov/cps/definitions.htm#medianearnings ).
By pursuing your educational goals and securing practical experience in industry related fields via internship training, you will be on your way to a satisfying and rewarding career as an economist.
