Hey there, have you ever wondered whether econ majors make money? It’s a question many college students ask themselves these days, especially as they debate which major to choose and consider the economic realities of the modern world. Given that the economy seems to be dependent on financial markets and complex economic systems, it’s not unreasonable to think that econ majors would be well-paid and in-demand after graduation.
That’s why I decided to dig a bit deeper and find out whether or not econ majors do indeed make a good salary after college. After all, choosing a major can be a huge decision, and it’s important to consider all the facts and figures before making a final decision. So, I rolled up my sleeves and researched the current job market, scouring job boards and talking to experts, to discover what kind of salaries econ majors can expect to earn. What I found might surprise you – keep reading to find out more!
Salary of Econ Majors
Economics is a popular major pursued by students who are interested in understanding the intricacies of the economy. An important consideration for students before committing to a major is the potential earning potential once they graduate. So, do econ majors make money?
According to a report by the National Association of Colleges and Employers, the starting salary for economics majors is $58,000 per year. This is higher than the overall average starting salary for all majors, which sits at $50,944 per year. Furthermore, the mid-career salary for economics majors is $101,000 per year, placing it among the top 10 highest-paying majors.
Factors that Impact Salary
- Level of education: Obtaining a graduate degree in economics can significantly increase earning potential. The median salary for those with a Master’s in Economics is $85,000 per year, while those with a Ph.D. earn a median salary of $120,000 per year.
- Industry: The industry in which an economics major works can also affect their salary. Those who work in finance and insurance tend to earn the highest salaries, with a median salary of $71,000 per year, while those who work in government tend to earn a median salary of $56,000 per year.
- Location: The geographic location where an economics major works can also impact their salary. Cities with high costs of living, such as New York and San Francisco, usually offer higher salaries to compensate for the higher cost of living.
Economics Jobs with High Earning Potential
While economics offers various career paths, some jobs tend to offer higher salaries than others:
- Investment banker: Investment bankers are responsible for raising capital for companies through securities issuance. They earn a median salary of $100,000 per year.
- Quantitative analyst: Quantitative analysts are responsible for utilizing mathematical models to help organizations make informed decisions. They earn a median salary of $80,000 – $130,000 per year.
- Management consultant: Management consultants help organizations solve problems and improve their performance. They earn a median salary of $85,000 per year.
Econ Major Salaries by Industry and Job Title
Below is a table showing the median salaries for economics majors in various industries and job titles based on information provided by PayScale:
| Industry | Job Title | Median Salary |
|---|---|---|
| Finance and Insurance | Investment Analyst | $59,000 – $116,000 |
| Government | Economist | $60,000 – $126,000 |
| Consulting | Management Consultant | $63,000 – $146,000 |
| Technology | Data Analyst | $51,000 – $98,000 |
It is important to note that salaries can vary based on factors such as years of experience, region, and company size, among others. However, a degree in economics can provide graduates with strong analytical and problem-solving skills and lead to high-paying job opportunities.
Job Prospects for Econ Majors
One of the main concerns for students pursuing an economics degree is whether or not they will have good job prospects after graduation. Fortunately, economics is a versatile and in-demand field, and there are many career options available to graduates.
- Corporate Finance: Many large corporations hire economists to analyze market trends and to help them make informed decisions about investments, mergers, and acquisitions.
- Consulting: Economic consulting firms often work with governments, non-profit organizations, and businesses to provide research and analysis of economic issues and policies.
- Government: Federal, state, and local governments hire economists to work on public policy and research projects, such as analyzing the impact of tax policies or forecasting economic growth.
In addition to these specific careers, economics majors also have skills that are highly valued by employers in many other fields. These skills include:
- Analytical thinking
- Data analysis and interpretation
- Problem-solving
- Communication skills
- Research abilities
These skills are in demand in many industries, such as finance, marketing, and healthcare. For example, a healthcare organization may hire an economist to analyze the cost-effectiveness of different treatment options.
According to the American Economics Association, the median starting salary for economics majors with a Bachelor’s degree is $60,000 per year. The top 25% of economics graduates earn over $90,000 per year, while the bottom 25% earn less than $45,000 per year.
| Job Title | Median Annual Salary |
|---|---|
| Financial Analyst | $82,000 |
| Economic Consultant | $114,000 |
| Market Research Analyst | $63,000 |
| Policy Analyst | $64,000 |
| Accountant | $71,000 |
Overall, the job outlook for economics majors is positive, with many career options available in a variety of industries. Graduates with a strong understanding of economic principles, analytical skills, and the ability to communicate effectively can find success in a wide range of careers.
Industries that Hire Econ Majors
As an economic major, one of the most important things to consider before graduation is what industry you want to work in. Fortunately, the skills and knowledge gained from an economics degree are highly versatile and can be applied to many different sectors. Below are some of the top industries that frequently hire economics majors:
- Finance: Many economics graduates pursue careers in finance, such as investment banking or financial analysis. The analytical and quantitative skills learned in an economics program are highly valued in this industry.
- Government: Government agencies often hire economics majors because of their excellent research and analysis skills. Many economics majors work in areas such as public policy, international trade, and economic development.
- Consulting: Consulting firms value the strategic thinking and problem-solving skills of economics graduates. Many consulting firms specialize in economic research or provide economic advisory services to businesses and governments.
Skills That Make Econ Majors Valuable in the Workforce
While economics graduates are highly sought after in many different industries, it’s important to understand why this is the case. Below are some of the key skills and knowledge areas that make economics majors valuable in the workforce:
- Data Analysis: Economics majors are trained to analyze large amounts of data and make accurate conclusions based on their analysis. This is a highly valuable skill in many industries that require data-driven decision making.
- Research: Economics majors are adept at conducting research, gathering data, and finding relevant information. This is an essential skill in many industries, including government and finance.
- Quantitative Analysis: Economics majors are skilled at using mathematical and statistical methods to analyze data and create models. This is valuable in many industries that require complex analysis, such as finance and consulting.
Earnings Potential for Econ Majors
One of the key considerations for any college major is the potential earnings after graduation. Fortunately, economics majors typically have excellent earning potential. According to the National Association of Colleges and Employers (NACE), economics majors have an average starting salary of $62,350, which is well above the average starting salary for all bachelor’s degree graduates.
| Career | Median Salary (per year) |
|---|---|
| Financial Advisor | $89,160 |
| Economic Analyst | $85,260 |
| Investment Banker | $100,675 |
Of course, it’s important to remember that earnings potential can vary widely depending on factors such as location, industry, and experience level. However, economics majors generally have excellent career prospects and earning potential.
Econ Major vs Other Majors in Terms of Earnings
Economics is a popular major among college students due to its practicality in several job industries. However, the question remains, do econ majors make more money compared to other majors? Let’s take a closer look:
- According to Payscale, economics majors rank fifth highest in terms of earning potential out of 173 majors, with a mid-career salary of $107,000.
- While other majors such as engineering, computer science, and mathematics have higher earning potentials, economics majors have a broader range of job opportunities in various industries like finance, consulting, and government.
- Finance and consulting are two of the most popular career paths for economics majors, offering high starting salaries, significant bonuses, and long-term earning potential.
However, it’s crucial to note that while earning potential is high for economics majors, it ultimately depends on the student’s skills, experience, and the industry they choose to pursue.
Below is a table of average salaries for entry-level positions in popular industries for economics majors:
| Industry | Average Salary |
|---|---|
| Finance | $65,000 |
| Consulting | $65,000 |
| Government | $55,000 |
| Nonprofit | $50,000 |
In conclusion, while economics majors may not have the highest earning potential out of all majors, they still hold a top spot and have a diverse range of job opportunities available to them, making it a practical and lucrative option for college students.
Factors that affect the earning potential of econ majors
Economics is a popular major for undergraduates because it offers a wide variety of career paths with high earning potential. However, the amount of money an econ major can make after graduation depends on several factors.
- Career Path: The career an econ major chooses has a significant impact on their earning potential. For example, graduates who go into investment banking or consulting have higher starting salaries than those who enter academia or nonprofit work.
- Experience: Just like any other field, experience matters in economics. Graduates who gain relevant work experience while in school or through internships are more likely to start at a higher salary than those without any experience.
- Location: The location of a job can also influence the salary an econ major can make. For example, those who work in cities with a high cost of living, such as San Francisco or New York, typically earn higher salaries than those in smaller cities or rural areas.
The Gender Pay Gap in Economics
Despite the potential for high earnings, women in economics still face a gender pay gap. According to a study by the American Economic Association, male economists earn about 15-20% more than their female counterparts. Several factors contribute to this gap, including discrimination, differences in negotiation skills, and the tendency for women to choose lower-paying fields within economics.
Earnings by Job Title
Jobs within the field of economics vary widely in terms of earning potential. Here are some of the highest-paying job titles in economics, according to data from the Bureau of Labor Statistics:
| Job Title | Median Annual Salary |
|---|---|
| Chief Economist | $185,020 |
| Economist | $105,020 |
| Financial Manager | $134,180 |
| Investment Banker | $100,675 |
Keep in mind that these salaries are median averages and can vary depending on location, experience, and skills.
Highest Paying Jobs for Econ Majors
If you’re an economics major, then you’re probably wondering what kind of jobs will pay you the big bucks. Well, you’re in luck, because we’ve compiled a list of the six highest paying jobs for econ majors.
- 1. Economist: As an economist, you’ll be studying economic trends and data to make predictions and recommendations for businesses, governments, and organizations. The average salary for an economist is around $100,000 per year.
- 2. Financial Analyst: As a financial analyst, you’ll be using your expertise in economics to analyze financial data and make recommendations to businesses, governments, and organizations. The average salary for a financial analyst is around $85,000 per year.
- 3. Investment Banker: As an investment banker, you’ll be helping businesses and organizations raise capital by selling stocks, bonds, and other financial products. The average salary for an investment banker is around $130,000 per year.
- 4. Management Consultant: As a management consultant, you’ll be using your economics background to help businesses and organizations improve their performance and profitability. The average salary for a management consultant is around $110,000 per year.
- 5. Actuary: As an actuary, you’ll be using your knowledge of economics and statistics to analyze financial risk and help businesses and organizations manage their financial assets. The average salary for an actuary is around $120,000 per year.
- 6. Data Scientist: As a data scientist, you’ll be using your economics skills to analyze and interpret complex data sets to help businesses and organizations make informed decisions. The average salary for a data scientist is around $120,000 per year.
As you can see, there are many high-paying jobs available for economics majors. Whether you’re interested in finance, business, or data analysis, there’s a job out there for you that will put your economics education to good use.
If you’re still unsure about which career path you want to take, it’s a good idea to talk to professionals in your field, attend networking events, and research different companies and industries to find the right fit for you. With your economics degree and these lucrative job opportunities, the sky is the limit when it comes to your earning potential.
| Job Title | Average Salary |
|---|---|
| Economist | $100,000 |
| Financial Analyst | $85,000 |
| Investment Banker | $130,000 |
| Management Consultant | $110,000 |
| Actuary | $120,000 |
| Data Scientist | $120,000 |
These figures are just averages and can vary depending on factors such as location, experience, and job responsibilities. However, they give you a good idea of the earning potential for different careers in economics. So, if you’re looking to make some serious cash after graduation, consider pursuing one of these highest paying jobs for econ majors.
Econ major’s earning potential over time
As an economics major, you may be wondering how much money you can make over the course of your career. The answer to this question depends on a variety of factors, such as your level of education, your job title, and the industry you work in.
Here are some key points to consider when thinking about your earning potential as an economics major:
- The starting salary for economics majors tends to be higher than the average starting salary for all college graduates. According to a 2019 survey by the National Association of Colleges and Employers, the average starting salary for economics majors was $60,594, compared to $50,944 for all majors.
- Economics majors who go on to pursue a graduate degree, such as a Master’s or Ph.D., often see a significant increase in their earning potential. For example, the average starting salary for someone with a Bachelor’s degree in economics is around $60,000, while the average salary for someone with a Master’s degree in economics is around $100,000.
- The industry you work in can also have a big impact on your earning potential. For example, economics majors who work in finance or consulting tend to make more than those who work in government or non-profit. In finance and consulting, annual salaries for economics majors can easily reach six figures within just a few years of graduation.
But how does an economics major’s earning potential change over time? The table below shows the average salaries for different levels of experience among economics majors:
| Years of Experience | Average Annual Salary |
|---|---|
| 0-1 years | $60,594 |
| 1-4 years | $75,123 |
| 5-9 years | $93,804 |
| 10-19 years | $107,232 |
| 20+ years | $114,686 |
As you can see, economics majors tend to see a steady increase in their earnings as they gain more experience in the field. However, keep in mind that these are just averages – your own earning potential will depend on a variety of factors beyond just your level of experience.
Do econ majors make money?
1. What kind of job can I get with an economics degree?
As an economics major, you can work in a wide variety of fields, such as finance, consulting, government, and healthcare, just to name a few.
2. Is economics a high-paying career?
Yes, economics is generally a high-paying career, with an average salary of around $80,000 per year, depending on the specific job and location.
3. How does the earning potential for an economics major compare to other majors?
According to recent studies, economics majors tend to earn more than graduates with degrees in many other fields, including business, psychology, and sociology.
4. Are there any specific skills that can help me earn more as an economics major?
Yes, skills like data analysis, market research, and financial modeling can all increase your earning potential as an economics major.
5. Is it important to pursue a graduate degree to earn more as an economics major?
While a graduate degree may help you in certain fields, it is not always necessary to earn a high salary as an economics major. Many entry-level positions offer competitive salaries and opportunities for advancement.
6. Are there any particular industries that offer higher salaries for economics majors?
Yes, industries like banking, finance, and consulting tend to offer some of the highest salaries for economics majors.
Thanks for reading!
If you are considering a career in economics, we hope that this article has helped answer some of your questions about earning potential. Remember, there are many different paths available to you as an economics major, and your earning potential will depend on a variety of factors. As you continue on your journey, we encourage you to explore all of your options and find a career that is both fulfilling and financially rewarding. Thanks for reading, and be sure to visit us again for more helpful insights and advice!