Graduate degrees in economics lead to very satisfying careers. Professional and academic economists have tremendous influence on both public and private policy, both in the government and in private industry. Economists work on interesting topics and are surrounded by interesting and skilled colleagues. The jobs of most economists include a great deal of autonomy and flexibility.
Economics degrees pay well!
The table below shows average incomes by education levels. The numbers on the left are for the whole population. Numbers on the right are for those who received a bachelor’s degree in economics and then continued to an MA or PhD in any area.
| Degree | Entire population | Bachelor's in Economics |
|---|---|---|
| BA | $75,000 | $111,000 |
| MA | $94,000 | $155,000 |
| PhD | $126,000 | $170,000 |
| * Source: American Community Survey, 2011-2021. Data courtesy of IPUMS.org. Figurs are average individual income among those reporting any income, inflation-adjusted 2021 dollars, ages 22-66. |
Overview of Master's and PhD Programs and Outcomes
Master's
Outcomes: Learn how to use advanced techniques to answer real business and policy questions.
Length of Program: Typically require 1-2 years.
Financial Aid: Generally have limited financial aid.
Careers: Some work in consulting firms, do forecasting, work for government regulators, and work in businesses of all sorts. Master’s level economists sometimes teach in community colleges.
PhD
Outcomes:
- Learn how to use advanced techniques to answer real business and policy questions.
- Make discoveries – Extend what we know about how the economy works.
- Create the knowledge that the next generation of economics BAs will study!
Length of Program: Typically require 6 years.
Financial Aid: Generally offer substantial financial aid. Most often, PhD students work as teaching assistants which fully covers their tuition and a livable stipend.
Careers: PhD programs primarily prepare you to do academic research and to teach at the college level. However, nowadays probably the majority of PhD economists take nonacademic jobs. They often do applied research and policy guidance in both the public and private sector. (Nonacademic jobs pay even better than academic jobs.)
Common Questions
Do I need my master's to apply for PhD programs?
No! In many fields a master’s is the first step along the way to a PhD. This is not true in economics for students attending American universities. While some students do a master’s degree and fall so love with the subject that they continue to the PhD, most students interested in the PhD do not do a preliminary master’s.
Do I need to have an undergraduate degree in economics?
No! However, you will need economics through intermediate microeconomics and macroeconomics and some econometrics is highly recommended. Of course, the more economics the better!
When would it make sense to get a master's before a PhD degree?
The one time a master’s-before-PhD makes sense is if you get a late start in taking required courses and need to do some catch-up before going to a PhD program. Most PhD programs do not admit students whose interest is a master’s, but most PhD programs grant students a master’s along the way to the PhD.